Is it time to move up in Silicon Valley?

BY JULIE WYSS  Originally published in the DEADLINENEWS.COM © JUNE 5, 2012 

 Those who have money to buy have been sitting tight for the past half decade.

Suddenly, everyone wants to buy real estate – first-time home buyers, investors, move-up, even move-down buyers.

What happened?

In the past four months inventories have fallen hard and prices have increased by $20,000 to as much as $100,000 on select properties. The bottom may have come and gone. It feels like recovery.

Silicon Valley bidding wars have erupted on everything from the worst distressed properties that attract all cash buyers because lenders won’t finance their sale, to $2 million homes in Cupertino, Los Gatos, Palo Alto and affluent areas with a tech worker-based populace.

Many local markets have become much more seller friendly.

Asked one buyer from Germany, “Why did the market move so quickly?”

Interest rates are at record lows. Prices have stopped falling. The Euro Zone troubles are prompting investors from abroad to buy U.S. There is no one specific answer.

I’m exposed to all of the global and local information available to real estate professionals and the best answer I have heard is “The herd has moved.”

Herd moving uphill

One of the fastest growing trends is move-up buys.

Home owners have been “sucking it up” and staying put, even through they have great jobs, tenure and steady pay increases. Now with this market surge, they are getting off the fence, selling mid-range homes, valued at $600,000 to $800,000 and buying up in the higher price range of $1 million to $1.5 million.

They are moving into long sought-after neighborhoods including, Los Gatos, Cupertino, Saratoga, Los Altos and Palo Alto.

They are married couples in their late 40′s and realize that life is too short to wait much longer and they really can afford their dream home.

I recently sold a Cambrian, San Jose neighborhood home that had appraised at about $700,000 a year ago. Concerned about over-pricing that could have killed a deal last year, we conservatively priced it at $760,000. It sold for more than $800,000.

The sellers, in turn, acted fast and found a great home in Las Gatos for less than $1.5 million – an entry level property for this affluent city.

Move-up financing

What kind of financing is attractive and available? It depends on the buyer. Do they hold shares of one of the hot fledgling tech companies and anticipate bonuses? Or are they on a fixed income?

One strategy is to get a conforming loan of $625,500 at a low, fixed interest rate under 4 percent and a second loan (Yes, they are back.) for $500,000 with an interest rate of 4.25 percent. For the down payment you’ll have to have to use the equity in the old home you just sold.

There are also amazing jumbo loans for a full $1 million available for low interest rates and 5- 7- and 10-year hybrid adjustable rate mortgages are back.

This is a fantastic time to move up.

Life is short.

Read this article on Deadline News by clicking here. 

408.687.2026   |   julie@juliewyss.com   |   www.juliewyss.com   

Real Estate Investors Offer Big Pay Off, If You Can Keep Up.

Deadline News.com article originally published on Feb. 3, 2012

JULIE WYSS – Today’s Silicon Valley real estate investor isn’t necessarily a high roller, but more often a working stiff with a small-business, who is tapping existing non-real estate investments to cash in on affordable real estate properties to flip or rent.

If you are a real estate agent looking to serve them, you’d better bring your A-game.

These younger investors aren’t “suits” sporting fancy cars, but are more likely to dress casually and drive a hard bargain, offering all cash or sizable down payments on the properties they buy.

Many are smaller, newer, more innovative-thinking investors with one or two rentals under their wing, looking to acquire more. One thirty-something investor with three children chose to drain the kids’ college accounts and buy three houses with 15-year loans. By the time the kids graduate, mom and pop can sell the farm and pay cash for college.

Some are trading in two-, three- and four-plexes for single-family homes (SFH), considered diamonds in the rough, valued at half what they cost at the peak of the market.

Investors with cash in the bank are getting off the fence because they no longer trust that their money will perform as well in conventional investments, including money market funds, stocks and other investments.

In the business to make money, investors also favor Section 8 housing’s guaranteed rental income.

San Diego-based DataQuick says absentee buyers – mostly investors – purchased a record 23.8 percent of all Bay Area homes sold, up from 21.7 percent in November and 20.2 percent a year earlier. That’s an average. The share is higher in some counties, cities and neighborhoods.

If investors sound like tough cookies, they are, but you can serve them well if you have the energy and expertise to meet their demands.

The average real estate agent thinks the job is to write a contract and pray it gets accepted. Here’s what’s really required.

Going the distance

Investors aren’t in the mood to manage. That’s what they do for a living. They expect you to take the lead on acquiring their investment and expect you to understand their investment goals.

Be prepared to show an investor as many homes as they wish to see in a day, six, eight. And not just any homes. They include short sale properties occupied by families down on their luck and homes in horrid shape.

When a hot property is available, the investor needs to be convinced to tour it.

“You need to see this property and I am picking you up at your office in 30 minutes and will have you back in an hour….” Worker bees may say “no” at first, but later will agree, because you insisted. They appreciate your initiative and ultimately enjoy the thrill of the chase.

Bring hard core negotiating skills to the table. An investor needs a real estate agent familiar with the distressed property market. After several investment purchases, a skilled agent should recognize a good deal and advise the buyer what to offer. Hit the nail on the head and you gain their trust.

When the investor trusts the agent, the investor is more often willing to offer a higher price, if that’s what it takes to get the offer accepted. However, if the investor is an all-cash buyer and can forgo the appraisal contingency, even the property inspection and disclosures contingency, then a lower offer with a quick close is a more effective strategy.

Investors have little time to spare, including the celebratory two-martini lunch after the deal closes. Instead, they’d prefer you to pick them up, get them to the sign-off and back to work in an hour.

Other investors prefer not to leave work, but complete the transaction without leaving their desk. They appreciate the convenience of electronic signatures, when permitted. Electronic signatures are not allowed on a short sale, but offering to send a traveling notary or providing curb-side pick up can overcome that obstacle and help them maintain a sense of control without actually managing you.

Investors don’t care to read the fine print, but they do want to know what’s in the deal. You, along with the lender, must review the note to be sure the rate and the terms are what the investor wants. You must sign off on the title report and be certain there are no problems with liens or easements. The new title must be in the correct name of the investor or the investor’s living trust.

After escrow, the tough keep going

The real work begins after escrow closes.

Whether the investor will flip the property or rent it out, chances are, the property could use some help.

You’ll have to have at the ready a database of trusted vendors available for any work necessary – termite work, painting, hardwood floor finishers, roofers, general contractors, landscapers, pool repair guys, HVAC companies, virtually any provider you can think of. But not just any contractor, great contractors with competitive prices.

You can manage the work by installing a lock box and setting up appointments with the contractors. This allows them to quickly get to work transforming the purchase into an investment with hefty returns.

Source: Julie Wyss is the top producing individual broker associate with Intero Real Estate Services-Los Gatos, CA. For more information about Julie and her real estate services, please visit her website.

Team Wyss Gets Rave Reviews

   

All activity occurred within the first half of 2013.

 Team Wyss: Offering Unparalleled 5 Star Service.  

                                        

Pending: 21889 Lone Oak Circle #1, San Jose, CA  95120 $2,700,000

Pending: 7615 Tiptoe Lane, Cupertino, CA 95014 $1,650,000

2418 New Jersey Avenue, San Jose, CA 95124 $1,300,000

Julie did an absolutely incredible job in getting us the house of our dreams! She was friendly, professional, efficient (responding to our emails at 6AM sometimes!) and made the complicated home-buying process seem easy, which we really appreciated as first-time home-buyers. Even after closing, she has been very helpful in getting the house set up the way we want it, by arranging for carpet service, etc., and referring us to other vendors. We would definitely recommend Julie to any of our friends looking for homes in the Bay Area.

Pending: 24 Coronado Avenue, San Carlos, CA $1,300,000

1460 Montego Drive, San Jose, CA 95120 $$1,260,000

Julie and her team did an amazing job in helping us find our new home. Julie accomplished something unheard of in this market...our offer, which was contingent on us selling our home, was accepted! We are very thankful to Julie and her team for not only finding but also securing our dream home for us.

 Pending: 6470 McAbee Road, San Jose, CA 95120 $1,030,000

1762 Duvall Drive, San Jose, CA 95130 $805,000

Julie and her team did an amazing job of selling our home. They held three super sized open houses and garnered some great offers on a very tight timeline as the sale of the mandatory in the purchase of our new home. Julie and her team get great results!

Pending: 4068 Page Court, Pleasanton, CA 94588 $755,000

Julie's team and her very reliable network worked hard and helped us beat very aggressive contract. We are very pleased working with her team, especially her hardworking Lynsey, who guided us, helped us and has been with us through the end. Thanks a lot!!!

651 Murphy Ranch Road Milpitas, CA 95035 $710,000

Julie is definitely someone you want on your side. Being a 1st time homebuyer, she made it real easy because she was extremely proactive, patient, and professional during the entire process. Met all my needs and I would definitely work with her again in the future.

1073 Saginaw Terrace #102, Sunnyvale, CA 94089 $658,000

Julie is an excellent agent. We were purchasing our first property, doing it while living abroad and in a seller's market! This purchase was a real challenge for all of these reasons and Julie managed the process in an impressive manner. She has great knowledge of the Silicon Valley real estate market, was always super responsive and helped us make a decision and complete the transaction very quickly. I highly recommend her!

6259 Mahon Drive, San Jose, CA 95123 $610,000

Julie helped us buy a house in a pretty tough market. Went through several offers on different places but got an offer accepted and it was pretty smooth after that. Much appreciated and recommended.

5341 Escover Lane, San Jose 95118 $570,000

Julie did an excellent job for us. Very responsive. Great follow up. We were looking for a rental property to purchase. With each house we looked through, she would point out the pros AND cons. Not pushy whatsoever. Very professional. We definitely recommend her.

7318 Moen Court San Jose, CA 95139 $550,000

We got in touch with Julie to sell our rental home in San Jose. Since we were living overseas, we had additional constraints in time and expense in the process.
Julie and her team did an amazing job ! Julie understood our specific needs and advised us on the market situation and brought in the options that made us comfortable with our decision. She was quick to respond to our queries, always reachable (from overseas) and made the whole process look easy. Thanks to Julie, we sold our home in much shorter time than we anticipated. We couldn't have asked for a better experience.
We would highly recommend Julie and her team to our friends.

5001 Granite Creek Road, Scotts Valley, CA 95066 $549,000

5228 Adalina Court San Jose, CA 95124 $566,000

We engaged Julie to help us sell our condo. We were living out of the area while the sales process was going on, so we communicated primarily by phone. We found her to be knowledgeable, she responded to our phone messages promptly, and provided us with a very good "stager" who did a great job. We are convinced that staging was big factor in a prompt sale. Also, Julie was instrumental in how the buyer structured their offer to accommodate the rapidly changing market. This led to a smooth sale with a positive outcome for both the seller and buyer.

Active: 5636 Orchard Park Drive, San Jose, CA $525,000

101 Morrow Court San Jose, CA 95139 $512,000

If it weren't for Julie, we wouldn't have gotten our house so fast. End to end, we closed the deal in less than 45 days...It was fantastic! Her widespread network and negotiating skills come in handy when you are fighting for a house in an aggressive market. She'll get you in on a house when no one else can. I have already connected her to 3 of my dearest friends so they can find a home as quickly as I did.

1116 Malott Drive San Jose, CA 95121 $510,000

Julie was fantastic to work with! Super professional, presentable, and always chipper, Julie brought her ‘A Game’ to every meeting we had with her. I was impressed that she had us both full out "wish lists" describing our dream house, separately. Then, she went over them together with us and helped us narrow down and refine what was truly important and obtainable for our budget. She did her absolute best to help us find our dream home, and while in the end, we stumbled upon it by accident ourselves, she was more than diligent and dutiful when it came to handling the daunting short sale process. I think my favorite moment of working with Julie was the day the house closed and we got our keys. She met us at the house, took the tour and hugged us both. She presented us with an enormous, overflowing gift basket full of goodies. Tied to the front was a Christmas tree ornament for our impending first holiday in our new home. Such a thoughtful, genuine gesture that really went the extra mile to say, “Thank you for letting me be a part of this process with you”. It was a pleasure having Julie as our agent and we would use her again in a heartbeat.

Pending: 1113 Alonso Drive, San Jose, CA 95126 $505,000

Active: 357 River View Drive, San Jose, CA $505,000

605 San Conrado Terrace #1, Sunnyvale, CA 94085 $482,000

We selected Julie Wyss to help sell our home in Sunnyvale after contacting several agents. Throughout the entire process she was open and up front about the details and next steps, quick to respond to any questions, friendly, and very professional. 

Since we were relocating to a different state, we wanted to leave quickly. She helped us take care of all details and arranged for everything to happen in our stead. The entire sale process was entirely painless! This was a huge relief for us as it gave us one less thing to worry about.

We really appreciate that she kept in contact with us throughout the sale and was always reachable. Julie and her team handled our sale promptly and professionally. Even after the sale, she called to see how we were doing in our home search in our new state. We would definitely and highly recommend her and her team.

3293 Kathleen Street, San Jose, CA 95124 $465,000

Pending: 709 San Conrado Terrace #6, Sunnyvale, CA 94085 $459,00

606 San Conrado Terrace #8, Sunnyvale, CA 94085 $450,000

We selected Julie Wyss to help sell our home in Sunnyvale after contacting several agents. Throughout the entire process she was open and up front about the details and next steps, quick to respond to any questions, friendly, and very professional. 

Since we were relocating to a different state, we wanted to leave quickly. She helped us take care of all details and arranged for everything to happen in our stead. The entire sale process was entirely painless! This was a huge relief for us as it gave us one less thing to worry about.
We really appreciate that she kept in contact with us throughout the sale and was always reachable. Julie and her team handled our sale promptly and professionally. Even after the sale, she called to see how we were doing in our home search in our new state. We would definitely and highly recommend her and her team.

1591 Delante Terrace, San Jose, CA 95118 $438,000

We chose Julie to assist us in finding our first home and our experience couldn't have been more positive. We weren't familiar with the area, market, or process in general, which can be quite intimidating for first time homebuyers. Julie was there to help us navigate through the process every step of the way.
She's very good at determining what a family needs in a home, is realistic with budgets, and is extremely flexible when it comes to calls and appointments. I think she goes above and beyond to ensure quality and satisfaction. 

We just purchased our first home, have settled in, and are very happy :-) We will definitely work with Julie in the future and recommend her to anyone looking for a home.

701 San Conrado Terrace #1, Sunnyvale, CA 94085 $430,000

Julie sold our condo in less than a week. She is an expert in her field and knows the market well. She tells you exactly what you need to do to get your maximum selling price. Her team is knowledgeable, fast & responsive. Julie Wyss and team are amazing! Great experience!

192 Goularte Way, San Jose, CA 95116 $295,000

Pending: 368 Carroll Street, Mountain House, CA 95391 $280,000

Coming Soon! 59 Pearce Mitchell Condo, Stanford University Housing, Palo Alto, CA Price TBD

Contact us today for World Class Real Estate Services

408.687.2026

 Julie@JulieWyss.com

www.juliewyss.com

All activity occurred within first half of 2013.