The real estate market for Sunnyvale town homes and condos for sale is pretty crazy right now. There are hundreds of new town homes springing up for sale in the eastern part of Sunnyvale but even so, the resale market is still on fire for sellers in Sunnyvale. Normally, if there is a lot of new construction the resale homes with suffer. This is not the case in Sunnyvale. The demand for homes has so far out paced the town homes available for sale in Sunnyvale that prices continue to appreciate and buyers need to offer more than list price to have the winning offer.
The closed sales of Sunnyvale town homes and condos was only 4.5% over list price, but that was a reflection of Sunnyvale town home and condo sales in December. By February the average sale price was 5% over the list price of Sunnyvale town homes and condos for sale. In March through May the average sale price was almost 8.5% higher than the list price of Sunnyvale town homes and condos for sale. So far in June the sales price is 11% more than the list price, reflecting the sales in May.
So if you are faced with making an offer for a condo or town home in Sunnvale how much should you offer? Unfortunatley there is no simple answer. Logically we can not expect 10% apprecition every time there is a sale. However, the number of people looking is not decreasing significantly. What is decreasing a little is the number of investors. As the prices have skyrocked, the return on investment for a rental property is decreasing. The amount you can get for rent has not increased at the same rate as Sunnyvale town home and condo prices have. In fact, so many investors have purchased rental properties there is actually a glut on the market nation wide, and a balance in the bay area.
The market is starting to turn back to buyers with loans intending to live in the property are the majority of people making offers, not investors with all cash.
So to the answer the question, how much should you offer on a Sunnyvale town home or condo for sale is not simple, but it is not an impossible question to answer. Look at the true market price, not the list price, which can be anywhere from 15% below market value, true market, of 10% higher than market. Take the true market value and go up a percent or two if you want it, and maybe 5% if you REALLY want it and can cover the difference between market value and your offer in cash since the bank will only lend based on market value. You may not win every time, but eventually you will get your Sunnyvale home.
If you have any questions about buying or selling a Sunnyvale town home or condo please feel free to contact me.