Chic vs. Geek: COVID-19

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How is the coronavirus outbreak impacting the real estate market?

CHIC (PEARL)

According to the National Association of Realtors, only 3% of their 1.4 million members have reported listings removed from the market due to the coronavirus pandemic. The crisis is putting a strain on everyone and adding short-term uncertainty to the market, and there’s still a lot that we don’t know about what the next few months will bring. But uncertainty is the name of the game in real estate, and savvy investors know how to stick to a game plan. Now is a great time to take advantage of low interest rates and timid bidders who may not be ready to commit to a property.

GEEK (KEVIN)

I have an important message for sellers: Do not panic. Keep calm, stay informed, and use your best judgment. If you have property on the market and a deadline to sell that doesn’t pause for viral pandemics, you can still get the word out through alternative methods like virtual open houses, interactive floor plans, and video tours. If you decide to host an open house, make sure you follow best practices, bring a lot of hand sanitizer, and keep some masks at the ready. And instead of paper handouts, share them in the mobile cloud. Drop us a line for more tips on marketing in a time of social distancing.

Introducing: Mountain View

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Nestled between the mountains and the bay, Mountain View is a thriving, diverse community, ideally located in the heart of the Silicon Valley (10 miles north of San José, 35 miles south of San Francisco), and home to internationally known corporations as well as dynamic small businesses.

Mountain View offers excellent public services, top-rated schools, and a family-friendly community with vibrant public spaces, restaurants, and entertainment options for young couples and singles. The city is incredibly walkable, with public transit options a short distance away, no matter where you are. It is consistently listed as one of the top cities to live in the U.S.

Learn more in the Neighborhoods section of our website.

Chic vs. Geek: Relative Bidding

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What is a relative bid, and what do you think about this approach?

CHIC (PEARL)

I was asked this question just the other day by one of my friends who is in the market for a home. By making a relative bid, the buyer essentially tells the seller that they will commit to paying a certain amount above the highest offer the seller receives. Typically, the buyer sets a ceiling on this price at a level they can afford. While there is a lot of risk involved (see the Geek’s answer), in a hot market with limited inventory, a relative bid could be the best option to ensure that you get the house. But there’s also risk involved. If the seller has not received an offer as high as the cap on the relative bid, they could simply counter at that maximum price or use it as leverage to get more offers.

GEEK (KEVIN)

This is one of those areas where the Chic and I happen to agree. In multiple offer situations, sometimes the highest offer comes with the worst terms. If most of the offers on a property are bunched together, the highest bid could end up being a dog with a lot of fleas that the seller never would have taken in the first place. For example, a buyer could come in with a high dollar offer and terrible terms just to make sure they get the property. If another buyer made a relative bid on the same property, they could be on the hook for a higher purchase price than the seller would have accepted under normal circumstances. Remember: Bidding is never just about price. It's also about the rules of engagement.

Introducing: Cambrian

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Surrounded by Willow Glen to the north, Campbell to the west, and Los Gatos and the Almaden Valley to the south, the Cambrian neighborhood of San José is a small enclave of single-family homes, condos, and townhomes, with high-rated schools and plenty of retail shopping options within a short distance. It is predominantly a bedroom community, but there is plenty of nightlife and activity just a short Lyft – or bike – ride away.

Cambrian is a good fit for commuters, with easy access to multiple freeways, While it’s not the best for public transportation outside of the VTA bus network, you can catch a light rail train in Campbell that will take you to Downtown San José and beyond. The area is served by one of the newest branches in the San José Library system, and Houge Park is dog friendly!

Learn more in the Neighborhoods section of our website.