Silicon Valley real estate continues to be on fire

Here are some recent real estate sales demonstrating parts of Silicon Valley continue to be on fire.    Below you will find recent sales activity in Cupertino, Sunnyvale, Saratoga, Los Gatos and San Jose.    You will see homes sold above the list price from $131K to $650K.  

We are hearing some problems developing in this hot real estate market.   Some transactions are not closing due to Buyer's remorse and appraised values not supporting the purchase price.    In addition, some Buyers are cancelling their offer and walking away and losing their initial, earnest money deposit or entering dispute resolution in an attempt to retrieve their initial deposits.  

Bottom line, for Buyers, work with your agent on a strategic plan so that your offer stands out in a multiple bidding process, structure a sound purchase offer with contingencies (if possible), acquire as much knowledge & intelligence on the home and community and ensure you are reviewing recent, comparable sales activity before finalizing an offer on a home.   

For Sellers, work with your agent to ensure you conduct due diligence on Buyers.   Ensure Buyers qualify at their purchase price, verify funds to close; contact the loan officer and Buyer's agent and inquire on strength or weakness of credit score/history, occupation, and high level info on debt-to-income ratio, reserves, income, and occupation.   Bear in mind the highest offer is not always the ideal Buyer.