The answer is deceptively easy. The list price for a home may have little to do with the property’s market value. Instead, it is just an offer to negotiate. Home buyers must be prepared for serious competition and make their own determination of value. There are three key reasons:
Interest rates remain low;
The number of new high-paying Bay Area jobs continues to grow; and
The actual number of homes coming to market continues to decline.
The numbers are compelling. The foregoing tables were generated by the Chief Economist for the California Association of Realtors through September of this year and confirm that multiple offers were the norm across California in 2017. Buyers must be prepared and have a strategy for success.
The buyers’ most important decision is the first: picking an experienced local agent to guide them through the process and help them accurately value local properties. Are you prepared? DeLeon Realty is the only firm in Silicon Valley with a dedicated Buyers Team who are tracking this market on a neighborhood-by-neighborhood basis, deconstructing the negotiation process, and prepared to successfully represent their clients. The following images show specific examples of just how competitive multiple-offer negotiations can be. The list price was just the starting line.