Our agents constantly swap intelligence on the Peninsula real estate market, especially at our weekly all-hands meeting. Each week, I recap their collective intel. Remember, this is banter, not a perfect representation. It reflects many individuals’ different opinions and thoughts.

Peninsula Real Estate This Week

Offer Strategy: Email Your Offer Immediately

Buyers’ agent: Pressure the listing agent by emailing your offer right away.  Don’t call. The best thing to do is email the offer.

Listing agent: We hate being on the receiving end of this strategy. To circumvent this move  when you don’t want to deal with preemptives in multiple offer situations, ask your clients: “Do I you authorize me to not look at preemptives?”

Disclosure Packet-to-offer ratio: new rule of thumb?

The rule of thumb has been one offer for every three disclosure packets that go out. Now, that relationship is changing. There are more offers to packets. The ratio is closer to 2 packets to one offer.

Pricing Strategies: Why some homes get more offers than others

Agents are using different pricing strategies. Most are auction pricing (setting list knowing it is below market), but some are pricing very low, others somewhat low,  and still others price right on the button (market pricing). As a result, homeowners and buyers are getting confused. “How come that house had 2 offers, and the other had 10?” The answer lies in different pricing strategies. On top of that, some agents are pitching success on the numbers of offers received rather than the price obtained compared to market value.  A successful sale should not be measured by the number of offers received or the percentage over list price, when both are a result of pricing strategies. Many offers often means that the house was underpriced, and the seller may well have left money on the table. With underpriced listings, we frequently hear other agents say, “Well, the market will just move it up.” “The market will take care of it.” Do not assume this.

List Prices Catching up to Sale Prices

The market made its move earlier this year. Sale prices are staying the same, while list prices are moving up to match those sale prices. Our market moves in big jumps. List prices trail until people realize the market has jumped. People are now getting it, so the gap has narrowed between sale and list prices. And then, buyer fatigue sets in. People lose repeatedly, especially those without cash. They’re saying, “I’m taking a timeout.” When fatigued buyers decide to wait for a different market, there’s less competition — and more opportunity opportunity for buyers.

Opportunity Neighborhood: West Selby District of Redwood City

The West Selby District is a pocket of opportunity on the Peninsula, where homes do not move fast.

Staging Tip of the Week

“Do not paint cinderblock gray. It looks like a prison.” - Brian Ayer.

Last Week’s Market Action

San Carlos

• It is insanity for townhomes. Townhomes are now selling over a million, even rundown 80’s model townhomes with no views. Young families who can’t get into single family homes anymore are snapping up 2000 square foot townhomes.  No yard, high HOA’s — and great schools. A rickety townhouse with freeway noise sold last week —  all cash, two day close. Ones with views are now selling for $1.3M. Buyers don’t seem to care if townhomes will hold their value in a down market; they just have to have a house — now.

• inventory still low.

•  notable sales:
  • a beautiful home on one of the best streets got four offers well over list price.
  • a lot of little 3/2s with tiny lots, selling at $1.3 – 1.4M.

• buyer profile: frustrated buyers who are pushed out of Menlo Park are saying, “Look at what we can get for $2M!”

Redwood City

• Redwood City real estate inventory fattening up, with 60 active listings, mostly down on flats.

• The price band between 900K and $1.2M is hot. The flats are selling quickly. The hills are slower, but good houses still sell.

South Palo Alto

• Everything’s selling. We’re looking at $1400 to $1500 per square foot.

North Palo Alto

• notable sales:

  • 5000 sq ft lot on Emerson in Old Palo Alto closed for $2.050M.

  • 1443 Hamilton sold for $4.1M — that’s a big number.

Portola Valley

Portola Valley real estate is going crazy. Prices up strong, so are volumes. 3 new listings came on today. All looked pretty cool. Los Trancos Woods has caught on.

Woodside

• Inventory keeps growing, with 41 listings. Five over $10M.

• Good houses sell in a week. Houses that sit either (a) aren’t good, or (b) agent has blown it on pricing. “A tale of two markets,” Chris Iverson calls it.

Coming Soon: Upcoming Homes for Sale

Here is a sneak peek at some of our upcoming listings.

Belmont

2600 sq ft house with amazing views, done kitchen, beautiful yard. Coming May 10. Listing agent: Annette Smith.

Emerald Hills

3000 sq ft, custom built house. 3 acres, mostly hillside. great house.  $1.799. Listing agent: John Sieling.

Los Altos

4BR house on 12,000 sq ft lot in in Arboretum area, Montclair Elementary, Cupertino Schools. Listing agent: Michael Dreyfus.

Palo Alto

• Off-market Eichler, 929 Van Auken Circle in Greer Park, 3/1. $1,599,000. Great corner lot. Listing agent: Dawn Thomas.
• a historic home on Lincoln. Listing agent: Michael Dreyfus.
• an Eichler on cul-de-sac, good family house, in the high $2’s. Listing agent: Michael Dreyfus.
• great house on Coleridge with 12,000 sq ft lot. Listing agent: Michael Dreyfus.

Portola Valley

194 Vista Verde Way. Main house: 4000 sq ft, 3 BR/ 3.5 BA, fantastic house, kids area, big wildflower garden.  Guest house: 1BR/1BA, 1000 sq ft. Listing agent: Peter Giovannotto.