The Top 5 Things You Need to Know about Selling a House on the Mid-peninsula

#1 Real estate here is a global market—for all sizes and types of properties.

We’ve all heard the sensational stories of wealthy international buyers swooping up luxury properties. (Link to sale of Los Altos property http://blog.sfgate.com/ontheblock/2011/03/31/100-million-dollar-los-altos-home-breaks-record/) But homes at all price levels are being sold to foreign buyers who are interested in getting a foothold in Silicon Valley. Condos, townhomes and modest single-family homes are being sold to buyers from outside of the United States in increasing numbers.

If you want to reach the entire market when selling your home, you need an agent who is savvy to the international market. Your agent must know how to reach potential buyers from around the world, how to communicate with them and she must understand their values and business practices.

#2 You should probably move out of your home before you list it for sale.

In the olden days of real estate, you would be put your house up for sale and begin looking for a house to buy. Once you found your dream house, you would make an offer, contingent upon the sale of your current house, with the idea of coordinating the timing so you could make a smooth transition from one house to the next.

Now many sellers, especially of higher-end properties, will move out of their homes, stage them and put them up for sale. This enables the home to be shown in its best light and, because we are in a seller’s market, the home will most likely sell quickly. In the meantime, sellers can take an extended vacation, live in temporary housing or secure a bridge loan that will enable them to buy a new home before selling the current one.

#3 If you want to cash in on the equity in your house now, but aren’t ready to move, a solution may be easier than you think.

I know, this seems to contradict my previous statement, but let me explain. Even though housing prices have skyrocketed here, there is still a BIG inventory problem. This is in part because, although some homeowners would love to realize the appreciation that they’ve gained on their houses, they aren’t quite ready to move yet.

The good news for those homeowners is that there are investors out there who are interested in getting in the market, but who don’t plan to live in the homes. For these investors, it’s an ideal situation to buy a house and then rent it back to the previous owners. They save the expense and trouble of advertising and showing the home for rent, and they can start charging rent as soon as escrow closes.

These investors will often be happy to rent the home back to you for a year or longer. In this strong market, even buyers who want to move into the house may be willing to rent it back to you for several weeks or months to enable you to let your kids finish the school year or give you time to find another home.

#4 Even though the internet is making real estate more accessible to the average person, it is more important than ever to have an experienced, qualified real estate professional sell your home.

A recent study shows for-sale-by-owner (FSBO) sales have actually declined in the past decade, as more sellers realize do-it-yourself selling can save them neither time nor money.

According to the 2013 National Association of REALTORS® Profile of Home Buyers and Sellers, the share of “For-Sale-By-Owner” sales has steadily declined over the past decade, from 14 percent in 2003 to 9 percent in 2013. After accounting for sales between acquaintances and sales in which the seller was contacted directly by the buyer, only 6% of recent sellers sold their own homes without the help of a real estate agent.

The reason is that selling a home takes more than just planting a sign on front lawn and waiting for the offers to roll in—even in a strong market. To successfully sell your home for the maximum price requires expert marketing and pricing strategy, (link to blog about pricing strategy) local, national and global exposure, experienced  negotiation skills and legal knowledge that only seasoned real estate professionals can provide. The more competitive the market is, the more important it is to have someone who knows the intricacies of the market and can use that knowledge to your advantage.

#5 Now is a great time to sell!

Right now we are seeing the highest prices ever in almost all cities and neighborhoods on the Midpeninsula. In some cases, buyers are paying crazy high prices. Interest rates are still relatively low, (but inching up). There is still a lot of money in the valley, and supply is still lagging demand.

While it may seem like prices just keep going up, up, up, we know from experience that this is never the case. Real estate runs in cycles. It steadily increases, peaks, then drops—sometimes dramatically, 20% or more. Then it levels out and eventually increases again. But the time from the drop to getting back to peak prices can take about five years. Trying to time the market is very risky and could cost you a lot of money if you are wrong. If you are thinking of selling your home any time in the next few years, this could be your best opportunity—NOW!