🔴 How Long Should A House Stay on the Market? | Blame for high home prices?
- Blame for high home prices? Fed Chair Powell says 'There hasn't been enough housing built'
- How Long Should A House Stay on the Market?
- What you get for $1MM Santa Clara County
- Inventory Watch
- Small business help
https://blog.abitano.com/2024/02/how-long-should-house-stay-on-market.html
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🔴 How Long Should A House Stay on the Market? | Blame for high home prices?
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Understanding the Market: How Long Should a House Stay on the Market?
How long should a house stay on the market? Who's to blame for the high house prices and what you get for a million dollars in Santa Clara County? Let's get moving. We also have an Inventory Watch. How
Understanding the Market: How Long Should a House Stay on the Market?
How long should a house stay on the market? Who's to blame for the high house prices and what you get for a million dollars in Santa Clara County? Let's get moving. We also have an Inventory Watch. How
How Long Should A House Stay on the Market?
How long should a house stay on the market?
How long should a house stay on the market?
The Art of Negotiation and the Importance of Days on Market Metric
It's, that's like the preeminent question, right? In my mind, I want to make sure that I deliver a great sales experience for my homeowner, and for my home seller.
It really depends on what strategy we're going with and how to maximize and get the most money in the best terms out of the sale. And to me, I use a little bit more of a, Negotiating Pitbull style process to make sure that we're successful all the way through. And when a seller fights me, then we have problems with that.
But it really means that you should learn more about the days on the market metric. And you need to know this because when you think about it, how's this brand new on the market? How's this just brand new? Oh, I want to go see it. So does everybody else. So does every other buyer that's out there.
They want to look at the house and make sure, Hey, is this one of the potential places I could live? Is this a good house? Is this a good area? Is this a good neighborhood?
The Impact of Overpricing and Stale Listings
So what you don't want to do is see houses that have been on the market for far too long. Look at that. I didn't even, what happens is after a certain point, your house becomes stale.
Your listing becomes stale, meaning the buyers in that pool have already seen your house either online in person or what have you, they've been told about it. And they're like, nope, it's overpriced or for the condition. What have you, it's very smart to understand who you're competing against and what buyers are typically looking at.
And the reason why is because you have to use the little reverse psychology on this, right? When a buyer is looking at your house, whether it's a bedroom or four-bedroom or however big it is, they're looking at the past 90 days as far as comparables so they can adjust what their offer price strategy would be.
And some people are like, I'm just going to go low. I'm going to go 100, 000 low no matter what. Or I'm going to go at market price or list price, or I'm going to go 5 percent over. I might go a little bit over depending and a good buyer's agent. What I teach my agents is you have to take all those houses that have been sold and that are.
In the market kind of create a straight line graph of where the price should land. And if it's downward, right? Some places in the United States are seeing a slowdown and price production. How long is too long? I can tell you that if the median days on the market is five days on the market 10 days on the market or a hundred days on the market, five, or 15 days after that is too long.
And that means that there's something wrong with the condition. The marketing strategy, is pricing or the location, right? There's all those three that we always talk about. It's really important to be on the side of the real estate agent that you hire because if you're fighting them, it's just not a good match.
It's not a good fit for you. And.
The Strategy Behind Relisting a Property
You what you want to do is have somebody that works with you not against you should you relist? Yes, but there's a strategy behind that too, and in our area, if you sell a house and it's listed for over X amount of days and you want to pull it off the market. You can't just take it off the market and put it back on the market Cause they have something that we track called combined days on the market, which still hurts you, which you have to do.
The rule of thumb for our MLS is 30 days off the market to reset that day on the market counter. And yes, you could do that, but then you're missing out. Smart agents will always look at the history of your house and see that you have it listed before. So our strategy when we come in is We want to make sure that we're presenting your house and the best efforts so that when that big mix of buyers comes through in the first couple days That pool that demographic of who is buying your house They're going I need to put an offer on this house, right?
So we list it just below where we think it should be sold maybe five or 10 percent below. And then we get offers right away. And when we have more than two offers, we get to leverage them back and forth. And I typically like to see anywhere from five to 15 offers, and then I can leverage them. And what I say is I break buyers, but I break the other chains because I go back and negotiate and I pump them all up.
And that's how I make sure that I, I. Get the most for my sellers.
The Role of Comparative Market Analysis in Pricing
Now let's just take a look at this house. I just did this yesterday or the day before. This is, let's just call this 1800 square feet. I think this really is like 2000 square feet, but the average square foot was 1800 right here. This house right here is.
2000, I think it's 2050. So we went and looked at four bedrooms and three bedrooms, two bedrooms, or two baths. It didn't really specify that. I went 10 percent variance on the square footage. And that kind of gives me a really tight, close look at what is being sold out there compared to that subject property.
And then I go out a mile radius. So that's what we do right here. So we see that there's houses, there's one house for sale, 1, 800 square feet sold for 1, 700. Or 1. 7 million. It's been on the market for nine days. Cause remember I did this two days ago, pending there's Brenda Lee Sorrell and Madison, which are all a little bit further, just really closer to the house.
I would say no more than a quarter, a third of a mile. And we look at that. So we're looking at 16, eight, and 20 days on the market and they're listed pretty low. And I can guarantee you that this one right here on Sorrel for being 2136, I bet this one's going to come in close to 2 million unless it's a total beater.
And we'll go take a look at that in a second. So then we go down to see all the souls in the past 90 days. Now, six, nine, again, remember we're in a pro our market right now today is there's very low inventory. Hugely low, like scary low. We have 150 single-family homes for sale in San Jose. Just crazy.
And we're seeing every house get multiple bids or bid up. As long as it's, as long as it's listed. Correctly, right? So this one is on Curry Drive, and I'll tell you why Curry Drive should sell a little bit lower than anything else because it's a little bit lower. It's a filter street.
Curry has a lot more traffic. And when you're facing it, you get a lot more traffic. So your house won't sell for as much. So buyers will tend to buy something within the neighborhood versus a filter street. And a filter street is not like Santa Clara. Teresa or Blossom Hill or San Carlos or Stevens Creek, those are avenues.
Those are the main arteries. A filter street is where you go from an artery to the house. There's a street like Curry or Bernal. Those are filter streets and we do have houses on that. So they tend to sell a little, take a little bit longer to sell and you won't get as much. Resell value out of it compared to everything else.
So when we look at it, we want to say, look, I think your house is worth X 1. 85. I think right now we're getting pretty close to it. This person right here wants to sell it for 2 million. So I've been watching it for them and it sold for 120 percent over the original list price. Liz's price-to-sale price ratio, right?
So let's see where that one was that sold. So actually it sold right at a hundred percent and it took zero days. So see, I don't like selling things off the market. So there you go. That's how you look at how long a house should be on the market. Now what's the average 22 days is the max. Eight is the average looking at this comp right now knowing that we're heating up the market I would say we'd stay at eight to ten days if it's over 20 days.
I would say we'd have that conversation about Lowering a price because we missed the mark etc But I tend to make sure that we keep your sales transaction as smooth as possible. So how long should your How stay on the market? It really depends on your area and what the comps say. All right.
The Blame Game: Who's Responsible for High Home Prices?
Blame for high home prices? Fed Chair Powell says 'There hasn't been enough housing built'
Prowell is to blame for high home prices. Fed chair says there hasn't been enough housing bill. This has been a problem since the nineties. We stopped building houses. We're still developing, but it seems like we're running out of land. We're not. And I'm not saying. Santa Clara County, where I'm talking to the United States all over, we have so much land.We're just not building as many homes as we can. And industrial, when I say industrial investors, the big guys that own tens of thousands of homes, they tend to buy swaths of properties at a time. And when the market slowed down a couple of years ago, Home sellers, the home builders needed to get out and send their money back to the investors. So a lot of home investors, the industrial investors bought these swaths of land. So it kept renters renting, kept buyers from buying, and kept move-up buyers. From sold their house and moved to another house because they just didn't have anywhere to go. That's why we have such a low inventory and our population is continuing to grow, right?So yes, that is one part of the problem. It absolutely is. One part of the problem is that we're not building enough homes. It's been a continuing problem. What we need to do is start building smaller properties because people, there are a lot of people who still want to buy big houses, but we still need to buy first-time homebuyer properties.
Or build a first-time homebuyer. Entry-level homes and not allow industrial investors to buy them, buy those because that's keeping people from getting to the next level of their wealth creation, which is living conservatively below their means. They own a house that they can take care of pay down the mortgage and have an asset to rely on in their older years as being prevented because of Wall Street.
Industrial investors are demanding that they buy more and more houses. So that's got to stop. And I know that we're putting a stop to that. What you get for a million dollars in Santa Clara County.
Prowell is to blame for high home prices. Fed chair says there hasn't been enough housing bill. This has been a problem since the nineties. We stopped building houses. We're still developing, but it seems like we're running out of land. We're not. And I'm not saying. Santa Clara County, where I'm talking to the United States all over, we have so much land.
We're just not building as many homes as we can. And industrial, when I say industrial investors, the big guys that own tens of thousands of homes, they tend to buy swaths of properties at a time. And when the market slowed down a couple of years ago, Home sellers, the home builders needed to get out and send their money back to the investors.
So a lot of home investors, the industrial investors bought these swaths of land. So it kept renters renting, kept buyers from buying, and kept move-up buyers. From sold their house and moved to another house because they just didn't have anywhere to go. That's why we have such a low inventory and our population is continuing to grow, right?
So yes, that is one part of the problem. It absolutely is. One part of the problem is that we're not building enough homes. It's been a continuing problem. What we need to do is start building smaller properties because people, there are a lot of people who still want to buy big houses, but we still need to buy first-time homebuyer properties.
Or build a first-time homebuyer. Entry-level homes and not allow industrial investors to buy them, buy those because that's keeping people from getting to the next level of their wealth creation, which is living conservatively below their means. They own a house that they can take care of pay down the mortgage and have an asset to rely on in their older years as being prevented because of Wall Street.
Industrial investors are demanding that they buy more and more houses. So that's got to stop. And I know that we're putting a stop to that. What you get for a million dollars in Santa Clara County.
What you get for $1MM Santa Clara County https://search.mlslistings.com/Matrix/Public/Portal.aspx?ID=0-994593336-00&agt=1&L=1
The Impact of Major Arteries and Filter Streets on Property Value
This one is on Blossom Avenue. Remember we were talking about filter streets. Blossom Avenue is a major artery.It's not 280 or 87. It's an artery to get off the freeway to the neighborhood, right? So if you look at it, this is a major artery district here. That's a filter street. This is an artery. That's an artery. That's an artery. This is, I would say it's close to a filter street when you have. Like caudal is, an artery flows into this.
So think of this, your little neighborhood as a capillary, some bunch of little capillaries when you're out there and you have a busy street and you know it because you have double cross double yellow lines. You know that's a busy street. Those houses will tend to sell for less than houses within the neighborhood.
If it's outside the neighborhood, like anywhere here, I sold a house right here last year. These sell really fast and really well for a whole lot more money. These ones you have to be careful about, right? Because they're very busy streets. You have a lot of traffic and if you have children, or dogs, or pets, that's one thing that you have to worry about.
So this house is brand new on the market. I think it's listed right at a million dollars. I think you're going to see it sell for about 1. 1 to 1. 15, but that's just my best guess. And if you want to go take a look this weekend, it's open.
The Impact of Major Arteries and Filter Streets on Property Value
This one is on Blossom Avenue. Remember we were talking about filter streets. Blossom Avenue is a major artery.
It's not 280 or 87. It's an artery to get off the freeway to the neighborhood, right? So if you look at it, this is a major artery district here. That's a filter street. This is an artery. That's an artery. That's an artery. This is, I would say it's close to a filter street when you have. Like caudal is, an artery flows into this.
So think of this, your little neighborhood as a capillary, some bunch of little capillaries when you're out there and you have a busy street and you know it because you have double cross double yellow lines. You know that's a busy street. Those houses will tend to sell for less than houses within the neighborhood.
If it's outside the neighborhood, like anywhere here, I sold a house right here last year. These sell really fast and really well for a whole lot more money. These ones you have to be careful about, right? Because they're very busy streets. You have a lot of traffic and if you have children, or dogs, or pets, that's one thing that you have to worry about.
So this house is brand new on the market. I think it's listed right at a million dollars. I think you're going to see it sell for about 1. 1 to 1. 15, but that's just my best guess. And if you want to go take a look this weekend, it's open.
Inventory Watch
The Current State of Inventory in Santa Clara County
And again, I said, we're really hurting on inventory. I think we'll see this start to pop up. I'll put a bet out there that, by the end of February, we're going to see this up to 300. But we needed to be about eight or nine hundred to make it a nice healthy market. Cooper, same thing with all the other little cities here, right?
All the cities that are adjoining San Jose within Santa Clara County, they are very low in inventory. You can see because these are the averages, these are the averages over the last couple of years. I'll change that once we get to June, so it's just this year. But I just like to have that as a guide as to where we should be.So Palo Alto had an average of 40 houses for sale. We're at half of that. Okay, a third of that. Two-thirds of that. Los Altos, we're down. El Viso El Viso. Milpitas, we're down. Morgan Hill is down. San Martín is up, but San Martín is so small. It's like El Viso, so it's not really good. Thumbnail 47.
Usually, we have 47 homes for sale in Gilroy. And that's the same thing. Florida has always been different. Florida is the inverse of the market, right? So Cape Coral, we have 7, 000 homes for sale versus the average of five. That's because snowbirds come down and start buying houses. But I think people are worried because we've had so many storms, and hurricanes hit that area that they're just absolutely not willing to buy houses there anymore because that and damage and insurance costs have gone crazy high. So everything else, I think you're going to see that it's normal. So that is it. That's it. All right.
Conclusion: Recap and Final Thoughts
Today we talked about how long should a mark a house stay on the market? Who's to blame for the home prices. It's not just home builders. There are a lot of factors into that and what you get for a million dollars and inventory snapshot.
I'm Vito with Abitano. Have a great weekend. We'll see you out there.
The Current State of Inventory in Santa Clara County
And again, I said, we're really hurting on inventory. I think we'll see this start to pop up. I'll put a bet out there that, by the end of February, we're going to see this up to 300. But we needed to be about eight or nine hundred to make it a nice healthy market. Cooper, same thing with all the other little cities here, right?
All the cities that are adjoining San Jose within Santa Clara County, they are very low in inventory. You can see because these are the averages, these are the averages over the last couple of years. I'll change that once we get to June, so it's just this year. But I just like to have that as a guide as to where we should be.
So Palo Alto had an average of 40 houses for sale. We're at half of that. Okay, a third of that. Two-thirds of that. Los Altos, we're down. El Viso El Viso. Milpitas, we're down. Morgan Hill is down. San Martín is up, but San Martín is so small. It's like El Viso, so it's not really good. Thumbnail 47.
Usually, we have 47 homes for sale in Gilroy. And that's the same thing. Florida has always been different. Florida is the inverse of the market, right? So Cape Coral, we have 7, 000 homes for sale versus the average of five. That's because snowbirds come down and start buying houses. But I think people are worried because we've had so many storms, and hurricanes hit that area that they're just absolutely not willing to buy houses there anymore because that and damage and insurance costs have gone crazy high.
So everything else, I think you're going to see that it's normal. So that is it. That's it. All right.
Conclusion: Recap and Final Thoughts
Today we talked about how long should a mark a house stay on the market? Who's to blame for the home prices. It's not just home builders. There are a lot of factors into that and what you get for a million dollars and inventory snapshot.
I'm Vito with Abitano. Have a great weekend. We'll see you out there.
Small business help https://youtu.be/lg-ppyCH2rg?t=54
https://blog.abitano.com/2024/02/how-long-should-house-stay-on-market.html
Vito Scarnecchia
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Understanding House Market Dynamics and Current Price Trends
In this video, we delve into several real estate matters that are essential for both buyers and sellers. We first discuss the ideal length of time a house should stay on the market and the importance of understanding the 'days on market' metric. We also talk about the factors contributing to high house prices and the role of industrial investors in the scarcity of available homes. Finally, we explore what you can expect to get for a million dollars in Santa Clara County. We also take a look at the current inventory of different cities adjoining San Jose.
00:00 Understanding the Market: How Long Should a House Stay on Market?
00:13 Introduction
00:15 The Art of Negotiation and the Importance of Days on Market Metric
01:17 The Impact of Overpricing and Stale Listings
02:55 The Strategy Behind Relisting a Property
04:21 The Role of Comparative Market Analysis in Pricing
07:36 The Blame Game: Who's Responsible for High Home Prices?
09:22 The Impact of Major Arteries and Filter Streets on Property Value
10:37 The Current State of Inventory in Santa Clara County
11:58 Conclusion: Recap and Final Thoughts
Title: How Long Should A House Stay on the Market? | Blame for High Home Prices?
Introduction:
When it comes to selling a house, everyone wants to know how long it should stay on the market. Additionally, the blame for high home prices is often a hot topic of discussion. In this blog post, we will delve into these questions and explore the factors that contribute to the duration a house should stay on the market as well as the forces behind soaring home prices. Let's get started!
Heading 1: How Long Should a House Stay on the Market?
When it comes to selling a house, the duration it should stay on the market depends on various factors. According to our real estate expert, it is crucial to consider the sales strategy, maximizing the sale's potential, and getting the best terms. One key metric to pay attention to is the "days on the market" or DOM. To ensure a successful sale, it is important to avoid listing a property for too long, as it may become stale in the eyes of buyers.
Heading 2: Understanding the Days on Market Metric
Days on the market are a critical indicator of a property's freshness in the market. A new listing attracts significant attention, as potential buyers rush to view it. However, as time goes by, interest might wane, and the listing can become less attractive. Sellers need to know their competition and understand what buyers typically look for to position their house competitively.
Heading 3: Decoding Buyer Psychology and Offer Strategies
Buyers often look at the past 90 days of comparable sales to determine their offer price strategy. This can involve various tactics, such as going low, offering at market price, or going slightly over. Experienced real estate agents analyze the recently sold properties and create a pricing trend graph to guide the offer price. It's essential to understand this psychology to navigate negotiations successfully.
Heading 4: Is There a Point When the House Has Been on the Market for Too Long?
While there isn't a fixed number of days that determines when a house has been on the market for too long, it's important to keep an eye on the local market trends. The median days on the market can give valuable insights. If the median is, for example, five to ten days, and a property exceeds that by five to fifteen days, it might be an indicator that there's an issue with pricing, condition, or location. In such cases, it may be worth considering a price adjustment.
Heading 5: Collaborating With the Right Real Estate Agent
To navigate the complexities of selling a house, it's crucial to choose the right real estate agent who aligns with your goals and strategies. A good agent will work with you, not against you, to ensure the best outcome. Their experience and expertise can make a significant difference in maximizing the sale price and minimizing the days on the market.
Heading 6: The Strategy of Relisting a Property
There are instances where sellers consider relisting a property. However, it's important to have a strategy behind relisting. In some areas, taking a property off the market and relisting it immediately might not be advantageous due to a metric known as combined days on the market. Typically, an MLS rule of thumb is to have a property off the market for at least 30 days to reset the days on the market counter.
Heading 7: The Million-Dollar Question: Who Is to Blame for High Home Prices?
The skyrocketing home prices have been a concern for many, and it's natural to look for someone to blame. However, according to our real estate expert, it's not just a single factor but a combination of reasons. One significant factor is the lack of housing development. Since the 1990s, there has been a decline in new home constructions, leading to a shortage of supply. Additionally, industrial investors who buy large numbers of homes have also contributed to the limited inventory.
Heading 8: The Dire Need for More Housing
To address the issue of high home prices, it's crucial to focus on building more homes, particularly entry-level properties for first-time homebuyers. Limiting industrial investors from buying these types of properties will allow more individuals to enter the real estate market and build their wealth. By addressing these factors, it's possible to create a healthy housing market where supply meets demand.
Heading 9: A Glimpse of Santa Clara County's Real Estate Market
To give readers a taste of the current real estate market, our expert highlights a property on Blossom Avenue in Santa Clara County. This major artery district location provides valuable insights into filter streets, which tend to sell for less due to increased traffic. The property is listed at a million dollars, and it is anticipated to sell for around 1.1 to 1.15 million.
Conclusion:
In conclusion, the duration a house should stay on the market depends on several factors such as sales strategy, market conditions, and buyer psychology. It is vital to be aware of the days on market metric and navigate negotiations strategically. Additionally, the blame for high home prices cannot be attributed to a single factor. The need for more housing and limiting industrial investors' influence are essential steps toward a healthier real estate market. By understanding these dynamics, sellers and buyers can make informed decisions and thrive in the housing market.
Remember, these are just the draft contents for your blog post. Feel free to modify and add any additional information that you find relevant.
Let me know if there is anything else I can assist you with!
1. Post 1:
"🔴 How Long Should A House Stay on the Market? | Blame for high home prices? 🏡💰
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2. Post 2:
"Are you selling your house? 🏠💲 Wondering how long it should stay on the market for the best results? We've got all the answers in our script breakdown. Learn the strategies to maximize your sales and get the best financial outcome. Don't sell without knowing the facts! #homeselling #realestateadvice #marketinsights"
3. Post 3:
"Curious about the real estate market? 🤔🏡 Uncover the truth about how long houses should stay on the market and the factors influencing home prices. Our script analysis dives deep into this hot topic. Get informed and make smarter decisions in the housing market! 📚💪 #realestateanalysis #housingmarketinsights #knowthemarket"
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