Valley of Heart's Delight Blog

What Type of Homes Can Be Bought for $1 Million in San Jose?

Ever wonder what a million dollars worth of San Jose real estate might look like? I ran a MLS search of select group of San Jose zip codes with single family homes priced between $975,000 and $1,025,000 so you could get a sense of what is available in that range. Areas covered are Almaden Valley, Cambrian Park, Blossom Valley, Central San Jose and Willow Glen. I hope you enjoy browsing this list, which is found on my Valley of Hearts Delight website:

What will $1 million buy in San Jose right now?

Conforming Loan Rates Change December 31st

A quick word to Silicon Valley homebuyers - the jumbo-conforming loan rate will slip nearly $100,000 on homes that do not close escrow by December 31st! If you want to take advantage of the rate break while it lasts, please call me today!

Mary Pope-Handy, Realtor,  CRS, ABR, e-PRO, SRES, ASP, RECS, CNHS, ACRE
Helping Nice Folks to Buy & Sell Homes Since 1993
Co-Author: "Get The Best Deal When Selling Your Home In Silicon Valley"
Keller Williams, Cupertino, CA  (Silicon Valley)
877 397-5391 (Direct/Toll-Free/Fax);   408 204-7673 (Cell)
www.DelightHomes.com     (PopeHandy.com)
emailto: Mary@PopeHandy.com
Blog: www.LiveInLosGatos.com & www.ValleyOfHeartsDelight.com

Slideshow of Scenic Spots in Silicon Valley

These are photos I took in and around Silicon Valley - included are pics from San Jose, Santa Clara, Almaden Valley, Campbell, Saratoga, Los Gatos, Cambrian Park, and more. Enjoy!

Silicon Valley Homebuyer Tip

Buying Silicon Valley home? Get the sales history!

Looking to buy a Silicon Valley home? If so, you may be seeing properties which were last sold just a few years ago. This often the case with distressed properties (short sales, foreclosures, short sales, and banked owned properties) . If you are working with a Realtor, this is easy information for him or her to obtain for you.

What is the benefit to a homebuyer in knowing that the home sold recently? There are really two advantages: first, if it's a normal sale (not distress), you can get an idea of the sellers' equity.  More importantlyly, though, if the current owners bought the home not too long ago, you may be able to read the prior inspections and disclosures.

Sometimes sellers are reluctant to admit that they saved this type of information. But if they hired the same  Realtor who assisted them in purchasing this property (also reported on the MLS), that agent would have access to all of the disclosures and reports. California state law demands that brokers save all transaction records for three years. Homeowners and their agents usually save them for many more years than that, though. (Sometimes agents move brokerages and this can make it more challenging to get full and complete records.)

So back to your Silicon Valley real estate issue. Let's say you have found a nice bit of real estate in San Jose (a house, condo, townhouse) which you want to buy, and perhaps there are recent improvements, updating or remodeling, “permits unknown".  The best way to get clarity on the situation is to then ask for the prior disclosures, inspections and reports. It is imperative to get everything because clues may turn up in any of these documents. Often the current owner will not recall the story if the work was done by prior owners, and will not think to check the original paperwork. But by reading through it, you may learn what the status really is - whether there are permits and finals or not, for instance.

Particularly when buying a home that sold in recent years, you can leverage your knowledge to improve your ability to purchase wisely.

Please call or email me if you'd like to discuss buying (or selling) a home in Los Gatos, Campbell, Saratoga, Cambrian Park, Almaden Valley, or anywhere in San Jose Santa Clara County.

    

Want to Buy a Home in Los Gatos? Here's Where to Start!

Are you interested in, or thinking of, buying a home in Los Gatos? If so, there's a home buyer page full of information targeted directly at the needs of Los Gatos homebuyers. Whether you want to browse houses, condos, or neighborhoods, you'll find tools to help you begin your homebuying journey there. It is a launch pad for loads of information, including:

• Los Gatos homes for sale - view by map

• Los Gatos homes for sale - broken down by price point

• Los Gatos real estate market reports

• Los Gatos home sales prices by map

• Information on Los Gatos neighborhoods, subdivisions and areas

• Information on Los Gatos schools

• Photos of Los Gatos

• Information on Los Gatos history, architecture, parks, and more

Please stop by and bookmark this site. It's a very helpful "starting point" for buying a home in Los Gatos.

Trying to Buy a First Home in Silicon Valley Amidst the Mortgage Meltdown, Credit Crunch and Financial Crisis

Things have been rough for first time home buyers in Silicon Valley. Lenders have been tightening requirements for months, demanding larger downpayments and more perfect credit than at any time in the last 10 years.  This is true all across Santa Clara County, from Evergreen to Saratoga to Cambrian Park and South San Jose. Money is tight.

For those hoping to get into a single family home for under $500,000, which is possible in some parts of San Jose, there's real improvement in affordability over the prices we saw a year ago. But that's only true if you can buy! Don't be discouraged - if you want to buy, now's the time to begin planning. 

What do you need to do to be able to take advantage of the soft Silicon Valley real estate prices?

• Cash is king, especially now - so save for that downpayment

• If necessary, consider buying your first home with your parents' help. They can put down some of the downpayment and be on title with you and you can pay them back over time. Of course, consult a real estate attorney to set this up!

• Check into the first time homebuyer programs available in your city or town

• Meet with a good lender (who comes to you by referral) to work out a plan to buy, clean up any credit issues, and investigate any other opportunities for assistance (such as programs for teachers, firefighters, police officers, and other city or county employees)

Call or email me if you'd like to talk about the possibilities of buying a home in today's Silicon Valley real estate market!

        

First Time Homebuyers in Silicon Valley: Get a $7500 No Interest, No Cost Loan!

Can you really get something for nothing? 

There are a few caveats, but generally, if you are a first time homebuyer in Silicon Valley or anywhere else in the U.S., you can now.

The government is offering a tax credit (not a deduction!) of $7500 to first time homebuyers who take the plunge between April 9, 2008 and July 1, 2009. This means that you'll have $7500 to use NOW to get your foot in the door with your first home purchase.

Unfortunately, it's a loan and not a gift, and you'll be paying Uncle Sam back at the rate of about $500 per year after a couple of years (interest free, though).

What are the exceptions? One exception, of course, is based on income (perceived need). If you're single and make over $75,000, or married making double that much, it appears you don't qualify. In San Jose, many residents make that much, but this should help teachers and others who are not so well compensated. But there may be a "partial credit" available for those making more than the limited amount.

The National Association of Homebuilders has great information on this available credit, so if you want to learn more, please visit their article on this credit.

What Are The Pros and Cons of Buying Your First Silicon Valley Home Now?

Opinions are strong about homebuying in San Jose or anywhere in Silicon Valley right now. Should you buy or should you wait?

It's a little different for first time homebuyers than it is for those wanting to do a "move up" in Santa Clara County. First time homebuyers do not need to worry about having to sell something to buy something else - that is a freedom that current homeowners don't enjoy!

Let's look at the reasons why you should wait and the reasons why you should move forward now. You decide.

Plusses of waiting to buy a home in Silicon Valley:

• it is less scary to wait than to buy
• the purchase price could be less in the future
• selection could be greater in the future
• more time may allow you to save more money for closing costs, downpayment, remodeling
• 10% down loans are not easy to get anymore

Plusses of buying now in Silicon Valley:

• in 2008 we have higher conforming loan rates, which will expire at the end of the year - so it is very likely that the loan you get will be more affordable this year than later
• rents in the San Jose area are up about 7% and continuing to rise
• there are big tax advantages to purchasing a home that aren't available to renters
• buyers have the upper hand in this market and can get good prices in many areas, the repairs they want and need done, and their terms met far more easily than in a sellers market

It's only in retrospect that we'll know when was the "best time to buy" (or the best time to sell). Timing the bottom of the market is as difficult for buyers as is timing the top of the market for sellers. We only know when we've missed it that it happened!

Additionally, home buyers need to consider not just the price of the home, but ALSO the price of the loan. If your home price goes down but the loan rate goes up, what will be the net impact on your homebuying? In many ways, it comes down to what the monthly payment will look like - principal, interest, taxes and insurance. The relationship between interest rates and home prices is interesting. Often when there's little demand (buyers market), interest rates go down. When there's high demand (sellers market), loan rates go up, because loan products are like everything else - it's a matter of supply and demand. We see this seasonally, too, reflecting market activity.

Each year is a little different from every other year, but August tends to be a slow month in Silicon Valley (the Campbell, Los Gatos, Saratoga, Almaden, Cambrian Park areas as well as the rest of San Jose and Santa Clara County). Same from about Halloween to just after the Super Bowl. Those times often have lower prices of homes and lower interest rates, but also less buyer demand and less inventory. There's more inventory and more demand  beginning around Valentines Day - but we tend to see interest rates rising then, too.

Your own situation is unique from everyone else's, but if you are able to buy your first home now, I would encourage you to seriously consider it. Speak with a highly reputable, experienced lender to see what your options are financially. Call or email me if you'd like to discuss the market or your plans.

With my best regards,
Mary

Introducing New Silicon Valley Real Estate Blog

First time home buyers in Silicon Valley will find the new "Valley Of Hearts Delight: Real Estate in Silicon Valley" blog to be full of useful information and insights on San Jose area homes. While not aimed particularly at first-time home buyers, many of the posts will be highly relavent to them, with topics including:

• area information (Los Gatos, Monte Sereno, Saratoga, Campbell, plus areas of San Jose such as Cambrian Park, Almaden Valley, and Willow Glen)
• silicon valley real estate market trends and statistics for Almaden, Cambrian, Los Gatos, etc.
• buyer tips
• seller tips
• tips on financing real estate transactions
• information on hiring professionals to assist in selling or buying a home in Silicon Valley
• various types of markets, from first time home buyer and first time home seller to the move-up market and on to luxury homes and estates in Santa Clara County as well as hillside and other property types in Siicon Valley
• general real estate information - where to access specific data for Silicon Valley real estate, such as market trends, statistics, agent information (California Department of Real Estate licensing info, for instance), explanations of commonly asked questions like "what is section 1 termite work?" and so on

Please stop by the new Valley of Hearts Delight site. You can access it directly by typing in www.ValleyOfHeartsDelight.com. Your feedback will be much appreciated!

Timing the Silicon Valley Real Estate Market:Buy or Sell Now, or Wait?

Timing the real estate market is even harder than trying to time the stock market. Why? In real estate sales, not only do you have to buy or sell a home, but the cost of the loan has to be factored in too. Buyers are really buying two things: a property and a loan. (We just don't think of loans as something we purchase).

When interest rates hit bottom, what happened to home prices? They rose.

Prices now are falling for homes in Silicon Valley, and what are interest rates doing? They're rising.

If you are selling, you only indirectly worry about the loan situation. Buyers, though, are counting their nickles and dimes and for them the pricing of the loan is a very direct issue.

Many of my buyer clients for the San Jose area are "on the fence" right now because they feel that prices may drop further. And I can't argue - I suspect they will. But I also believe that our economic situation is worsening right now and that loans are going to become more expensive.  So I am not convinced at all that affordability will improve. At the end of the day, unless you are a cash buyer, your main concern will be the payment. Will it be less in 6 months? No one knows, but I suspect not.

Home buying is not a quick investment. I tell my buyers that if they can't be in their new home for 3 years, don't bother. Rent. It's cheaper. Transactional costs in buying, and especially in selling, add up fast so you need to be ahead by about 8% from your purchase price just to break even when you sell. If you can be in a home for 5 years, you are likely to make money, and at 10 years, may well double your initial investment or downpayment - or better.

Everyone asks me when I think the bottom of the market's going to hit. I don't know, but I have heard that the peak of short sales will hit in December, so foreclosures should be 2-4 months after that. Once we're past that point, things should begin to improve. But I would not wait for that point, because again, we don't know what interest rates will be doing.

Finally, right now the federal government has given us a little gift of the "jumbo conforming" loan limits. These are set to expire the end of 2008. Right now, that's about a half percent benefit for home buying in Silicon Valley. It is a great opportunity to buy at a more affordable rate and it should not be squandered!

Sellers, I think it's going to get worse before it gets better. If you can wait 2-3 years to sell, that might be best. On the other hand, if you are downsizing, you may do very very well to sell your more expensive home now and buy a smaller, less expensive one immediately. The lower priced homes are taking a beating in this market - so it's the ideal time to downsize.