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A buyer real estate agent like me needs all of the data, such as the address, home and lot size, to accurately answer the question.
However, many buyers of homes in San Jose, Calif. and surrounding cities in Silicon Valley, such as Saratoga, Cupertino and Palo Alto often have the same question: Why is a particular Santa Clara County home asking such a low price?
Sometimes a San Jose home is priced low as a strategy designed to ensure multiple offersand a bidding war.
Other times Silicon Valley homes are priced low to compensate for other off-putting factors buyers may hesitate to get involved with, such as the lengthy, seemingly-arbitrary short sale, probate or bank-owned process. In those situations, lenders and other institutions, such as the courts, make the rules and buyers must accept the terms or walk away.
Still other times, a San Jose home is listed at a low price to compensate buyers for issues such as a busy street, a mixed-use area (retail, apartments, some SFH), poor condition, or a stigma, such as an act of violence or death on the property.
In Marcel’s example of the Alum Rock home for sale in San Jose, Calif., zip code 95127, that area saw some of the deepest drops in value with the initial market shift. Over the past few years, it’s seen higher rates of foreclosures, short sales, and distressed properties, leading to a pattern of decreasing values, which has since stabilized.
However, many families love living in the San Jose Alum Rock area. Family members often want to live and work and stay close to each other. So when a couple gets married, they often buy nearby one of the parents’ homes. Or when it’s time to buy an investment rental, the buyer chooses a home in the neighborhood she already knows and feels comfortable in. Should it be time to downsize, an elderly client chooses to buy nearby family to facilitate continued visits and support.
I recently sold a short sale home in San Jose’s Alum Rock area. We priced it low (to ensure multiple offers, which we received) and the majority of buyers had family living nearby. Out of 9 offers, 5 parties lived within 2-3 blocks of that exact home. They made above-price offers even though it had four negatives: it was a short sale with deferred maintenance—and the home was located on a busy street (White Road), right across the street from James Lick High School.
In the case of 6312 Bollinger, San Jose, a Lynbrook High Home asking only $799,800 in an area where the average sale price is ~$950,000, the answer is busy street. However, that's a $150,000 discount - nearly 20 percent off the average West San Jose Lynbrook homes sold.
When you’re curious about why a Silicon Valley home is asking what seems to be a low price in San Jose, Cupertino, Saratoga or other Santa Clara County cities, Just Call 408-252-8900.I'm happy to research a particular home's situation for you so you can choose the right home for your family to buy.
Aloha & God bless you,
Michelle Carr Crowe Real Estate Agent Keller Williams Cupertino
20230 Stevens Creek, #E Cupertino, CA 95014 www.MichelleJudyCarr.com
Michelle C. Carr-Crowe, DRE #00901962, and the Get RE$ult$ Team (established by the late Judy Carr) are known as the "Lynbrook and Cupertino Schools Experts." Michelle is a creative catalyst for positive change in people's lives.She is a Silicon Valley-based multi-million dollar real estate consultant who works by referral only.
San Jose Homes for Sale in Cupertino Schools, selling Lynbrook High Homes, Buying homes in Cupertino Schools, Homes, Holidays and Events in Silicon Valley, West San Jose, Los Gatos, Saratoga, Monte Sereno, Campbell, Palo Alto and Santa Clara by Michelle C. Carr-Crowe and the Get RE$ult$ Team
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.