Should you find your Realtor first or your lender first? Should they know each other?

A bad lenderIt’s an old question – should you find your Realtor first or your lender first? I would like to suggest that you find your Realtor first, and then ask your real estate agent for a list of reputable, trusted loan agents or lenders.

Why?

Because as with all professionals, lenders (and Realtors) are not created equally.

You will probably spend a LOT more time with your Realtor in viewing homes, reviewing disclosures, writing the contract, meeting inspectors, and so on – so I do suggest that you begin by very carefully choosing the right real estate licensee or broker for yourself. A good Realtor can probably give you between 3 and 10 names of trusted, reputable, reliable, knowledgeable lenders. From there you can interview and choose someone.

It is extremely important that your lender be good at what he or she does. A bad lender – and there are many of them – could cost you the sale, but definitely will create undue stress, will waste your time and ultimately cost you money. This is no exaggeration.

In our hot Silicon Valley real estate market, when there are multiple offers, many listing agents will phone the buyer’s lender to see how solid the buyers are and how decent the lender seems to be. The better loan agents will answer the phone when called – because they are anticipating the call. The lesser ones are not paying attention and don’t pick up. That small decision, one way or the other, can be critical! A few years back, I spoke with a high powered agent out of Saratoga who told me of this very scenario. She concluded “the lender who didn’t take my call cost the buyer the sale.” Yes, it matters that much.

A poorly organized loan agent may misplace documentation, causing you to miss work so that you can get it to him or her again in a rush (under pressure of the loan contingency removal date). I have known buyers to lose time from work due to the ineptitude of a loan agent (but not one that I suggested).

All deadlines must be agreed to by buyers and sellers in writing, no exceptions. Can you imagine what it’s like to ask your lender how many days will be needed for the loan contingency, only to have to extend it not once, but a few times, because it’s just not done yet? A lousy lender will make this happen. Sometimes they are submitting loan packages based on old guidelines rather than current ones. You and I won’t be involved at that microscopic level – but if the lender messes up, we’ll hear about it later.

In the worst case scenarios, a really terrible mortgage banker or broker will cause so many delays that you close escrow late, causing you, the buyer, to pay some of the seller’s coverage costs. If the rates go up during all of the delays, you may pay a  higher interest rate too.

That’s the gloom and doom of it.

In my real estate practice, often about half of my clients come to me with their own lender. Although this is not ideal (it’s better if the Realtor and lender go into it with a good working relationship), often it works out OK. But sometimes it’s a train wreck. This doesn’t happen, at least not in my experience, if you get a lender I’ve already vetted. Or if you’re working with another great Silicon Valley Realtor, one that he or she has screened. I would not suggest someone incompetent or who will screw up the transaction – of that you can be sure! I want you to buy your home as much as you do, and I want it to be as smooth and hassle free as possible. A bad lender can put all of that in jeopardy, though.

San Jose Mercury News Headlines April 15 – 16 2014: home prices to buy or rent are rising steeply

Flashback Friday!

As I was going through old blog posts, I found this brief installment from April 17th, 2014. Often I write that the current hot sellers market in the Bay is “prolonged,” “steady,” or “persistent,” but seeing these two headlines from over 3 years ago really shows just how unyielding it has been. It is highly unusual to be in such a strong, drawn-out market, but there’s no clear indicator that things will change anytime soon, either. Buyers and renters might find some relief now that autumn is here in hopes that it brings the usual seasonal cooling.

Find the original post immediately below. – Update October 22nd, 2017

 

Here are the headlines from the San Jose Mercury News in mid April 2014:

Home Prices to buy or rent going up April 15-16 2014

Rental article: Bay Area apartment rents set record 4/16/14

Excerpt:  Bay Area apartment rents are rising at nearly double-digit annual rates and have reached record levels, according to a report released Tuesday, prompting some analysts to warn that the region’s economic boom could be choked off by the relentless rise…..  Among the Bay Area’s three largest cities, San Jose had an average asking rent of $2,066 during this year’s January-March quarter, up 10.3 percent from the same period last year, RealFacts reported. Oakland had an average rental rate of $2,187, up 12.3 percent, while San Francisco posted an average of $3,057, up 9.5 percent.

Home buying article:   Bay Area home prices jump year over year

Excerpt:  March marked more than 20 consecutive months of year-over-year price gains for single-family homes in the East Bay, South Bay and Peninsula, according to real estate information service DataQuick, which released a report on March sales Wednesday…. The San Diego-based company said that prices were up 29.2 percent from the previous March in Alameda County to $575,000. In Contra Costa County, prices rose 22.8 percent to $425,000. Santa Clara County gained 20.3 percent to $800,000, and San Mateo County was up 13.2 percent to $860,000.

Whether you buy or rent, prices have been rising dramatically.  When factoring in what housing will cost, include the trajectory of appreciation per month.

Silicon Valley neighborhoods

This website, Move2SiliconValley.com, provides an overview for people thinking of or planning to move to Silicon Valley. If you want to dig deeper and learn about individual Silicon Valley neighborhoods, I want to suggest that you visit some of my other websites and blogs for Silicon Valley real estate resources.  Please have a look:

popehandy.com is my flagship site for Silicon Valley real estate – it includes area or neighborhood profiles for all the Silicon Valley communities (in all 4 counties) as well as information for Silicon Valley home sellers and more. Visit popehandy.com and click on “Communities” for a drop down menu listing the 4 counties and learn about the cities, towns, and areas that comprise the Silicon Valley area. (I run several sites and have many articles on them, and this is the one which covers the broadest territory.)
popehandy.com Silicon Valley neighborhoods

ValleyOfHeartsDelight.com is where I showcase my listings, and it’s the site for general real estate info in Santa Clara County and Santa Clara Valley, once known as the Valley Of Heart’s Delight. Most of Silicon Valley is in this area.

SanJoseRealEstateLosGatosHomes.com covers real estate in the town of Los Gatos and the nearby areas of San Jose, Campbell, Saratoga and more. I think it’s the best part of the Santa Clara Valley or Santa Clara County, but perhaps I’m biased. There are MANY posts with local market trends & statistics, updated monthly, for these areas plus Cupertino, Sunnyvale, Mountain View, Almaden Valley, Blossom Valley, Willow Glen, and so on – areas within Santa Clara County. (Google “real estate market” plus the city or area you’re interested in, and you likely will find an article on this site for your desired corner of the region.) Additionally, there are special research postings on the absorption rate in Los Gatos and Saratoga. Also you’ll find Silicon Valley neighborhoods described in depth, often at the subdivision level for areas such as Cambrian and Almaden. Check it out, it is a wealth of information!

For example, here’s an article on the Happy Valley neighborhood, also known as the Country Lane neighborhood:
Happy Valley neighborhood, Country Lane neighborhood – west San Jose

LiveInLosGatosBlog.com focuses on the town of Los Gatos, its neighborhoods, areas, districts, as well as events, parks, real estate for sale, the arts, schools, businesses, restaurants, and much more.  A little more community and a little less real estate, but the BEST site for Los Gatos neighborhoods you’ll find anywhere. Los Gatos was once known as the “gem city” and is still a very beloved corner of Silicon Valley today, with historic neighborhoods and homes, gorgeous architecture, and a vibrant downtown. Before deciding where to live, be sure to investigate this scenic town snuggled at the base of the Santa Cruz Mountains – the gateway to the valley.

popehandy.ReReport.com is all about the statistics for Silicon Valley, including San Mateo County, Santa Clara County, and Santa Cruz County. Overall, it is very comprehensive. It features a way for you to track listings and sales near your own home, or one of interest, too.

Silicon Valley neighborhoods where I focus my real estate sales:

Obviously, 4 counties is a lot of ground to cover, and most Realtors don’t work that huge of an area in urban communities like ours. I have sold in all 4 counties, but the vast majority of my business is in Santa Clara County, where I live and where my office is located.

In general, I avoid taking on buyers in counties outside of Santa Clara County as it’s far with today’s traffic and with buyer clients it’s important to be super responsive and see new listings as soon as they are available. For that reason, I’d be happy to introduce you to a great buyer’s agent in those areas if that’s where you’d like to purchase a home. With listings it’s far fewer trips and I have more control of my time, so I’m happy to assist sellers in all of these counties.

What are the usual open house times in Silicon Valley?

Open House signs when to whenIf you are house hunting in Silicon Valley and new to the area, you may wonder when the usual open house times are. Unfortunately, open house times are not perfectly predictable as there is variation both from one brokerage or agent to the next and one region of the counties that comprise Silicon Valley to the next as well. As an example, in the Blossom Valley area of San Jose, condos or houses are frequently available for viewing between 1:30 and 4:30, but it’s not a rule – some listings may have a totally different schedule!

In general, most open houses will be available between 2 and 4 on weekend days if advertised as open (sometimes Saturday, sometimes Sunday, sometimes both. Open houses can run from 12-5, 2-4, 1-4, 1:30 – 4:30, 2-5 etc. If you arrive between 2 and 4 (not “at” 4), you are likely to find it open if it’s advertised as such.  Some real estate agents may hold it open sooner or later, though. If a Realtor has a couple of properties that need to be held open for the public, one could be from 11-1 and the other from 3-5 or some such schedule.

The broker open house is usually not intended for the public, but for agents to show listings to other agents who are looking for their clients. Occasionally (more frequently now than before), the home is open to the public to view. Broker open home tours take place on weekday mornings, typically Wednesday, between approximately 9:30am and 12:30pm.  If non real estate professionals (the public) are welcome, it will be advertised on our MLS, so check online or with your agent.

It is always best to check online at www.MLSListings.com for the most accurate schedule for open houses, which may be during weekday mornings, twilight tours, or weekend afternoons or mornings.

Finally, do not count on all properties listed for sale in Santa Clara or San Mateo Counties to necessarily be available for viewing at an open house. Some listing agents and some sellers prefer NO open houses, believing that any qualified buyer who’s serious will be working with a buyer’s agent and can make an appointment to see it privately. (This is yet another reason why every buyer should have his or her own real estate agent rather than planning to work with the listing agent when buying their next home.)

Moving to Silicon Valley in fall or winter? A few things to know.

Winter Arrival Graphic - says "Winter Arrival"If you are moving to Silicon Valley, whether San Mateo or Santa Clara County, you should know that things are a little different in fall and winter than they are in spring and summer.  Here are just a few areas that might not be intuitively obvious to the newcomers.

First, a word on appearance.  In Santa Clara County, we have two primary sets of hills – one closer to the Pacific Ocean and Monterey Bay (west side), and one closer to central California (east side).  Because our local weather is dominated in very large part by the Pacific Ocean, much of the weather blows in from the coast.  A lot of the rain gets dumped in the coastal range, also known as the Santa Cruz Mountains.  Less makes it all the way to Los Gatos, less still to downtown San Jose, and a much smaller amount to the east foothills and places such as Alum Rock Park.  The coastal range (also called just “the hill” by locals) is green year round as it is full of redwoods and other trees which love the moisture. The east side, though, is more grassy, fewer trees, and gets far less rain.  In winter the grasses are a lovely green.  With drought or in summer, however, the grass turns brown or pale yellow.

For people coming from the east coast, the hills there are more likely green in summer and brown in winter.  Here, though, it is the opposite.  We don’t usually get rain in summer, so the grasses die and the hills go brown.

Rain, when we get normal patterns, usually begins in November and comes and goes between then and late April.  In a typical year, San Jose gets 15-20″ of rain (Los Gatos more, the Los Gatos Mountains much much more).  If we get an El Nino pattern year, temps will be warmer than usual and rain will be much more common than typical.  It’s not much fun to have an El Nino year, but right now we desperately need the rain, so folks here are all hoping for it.

Second, a word on roads and travel.  Silicon Valley enjoys a sub-tropical climate with mild temperatures and not too much rain, even in a normal year.  With very little rain most of the time, our streets and highways can develop a dusty, oily film.  Whenever we get rain after a dry spell, those highways and roads can be slicker than you might expect.  It’s not that we need a ton of rain for the surfaces to become more slippery, either.  A very small amount of precipitation can do the trick, so be careful!

If your destination requires going over “the hill”, be triply careful!  Too many people, whether regular commuters or first time adventurers, either tailgate or drive too fast, and it can make it too easy for accidents to happen when a little weather is added into the mix. (more…)

What does it cost to buy a 3-5 bedroom house in an area with good schools in Silicon Valley?

School District MapIt’s a hot seller’s market in Silicon Valley, but it’s also a time of great job growth here! Each week I get calls or emails from people considering job offers in Cupertino, Palo Alto, Mountain View, Sunnyvale, Menlo Park, San Jose and nearby. Many of these recruits are interested in areas with superior public schools.

What’s the cost of buying a house of about 2,000 square feet with 3-5 bedrooms and great schools?  A few communities with better education are these: Los Gatos, Saratoga, Cupertino, Palo Alto. We’ll consider these to provide a sense of prices in similar areas.

Here’s a quick look at what single family homes have been selling for over the last three months:

  • Los Gatos: mostly $1,200,000 to $2,200,000 depending on the school district, averaging about $1,700,000
  • Saratoga: mostly $1,400,000 to $2,300,000 depending on the school district, averaging about $1,900,000
  • Cupertino: mostly $1,700,000 to $2,100,000 depending on the school district, averaging about $1,950,000
  • Palo Alto: mostly $2,000,000 to $3,300,000 depending on the school district, averaging about $2,650,000

If you are new to Santa Clara County, you may be wondering if this is correct. It is…

Please continue reading here:
How do prices compare between Los Gatos, Saratoga, Cupertino and Palo Alto?