Just How Far Over Asking Price Can A Home Go These

In last week's blog I reflected on the latest excellent statistics for home equity gains in our area.

While those figures were amazing enough (please click here to read the blog if you missed it), nothing prepared me for an article in The Mercury News earlier this week.

It focused on a very modest four-bed, two-bath, sub-2000 sq.ft. house in Sunnyvale that sold for, wait for it, $782,000 over asking price (listed for $1,688,000, sold for $2,470,000).

Unsurprisingly, the report says that this is the most any home has ever gone over list price in Sunnyvale.

Of course, no one is suggesting that these kinds of gains are commonplace, but this extreme experience does indicate the fantastic opportunity for would-be sellers living in the right location, such as the Sunnyvale home, which is situated about a mile from the new Apple campus and close to other tech centers.

But the very fact that competition is so hot for the right place in the right spot in most sectors is yet another example of how our market continues to amaze me after more than 23 years in real estate.

In fact, it took me right back to 1994 when I started in this business. Several experienced fellow realtors told me then that prices would never go up. How wrong can you be!

I also remember passing on buying a house for $140,000 way back when in Cupertino that's now worth over $1.8 million!

The news of the incredible sale of the Sunnyvale home this week teaches us two key things, in my opinion.

The first is that we live in an area that, in some respects, is probably unique compared to anywhere else in the world, whereby we have an economy that is so fundamentally driven by the phenomenal success of the tech industry. And there's every reason to believe that this is a story that is going to run and run, thanks in no small measure to Apple's recent colossal new investment here.

It also tells us that there's so much value in buying real estate here. Those realtors who predicted no further gains in 1994 were probably speaking from a position where, even then, it was hard to envision that things could get even better. And yet here we are in 2017 and the returns can be phenomenal. Who's to say that there isn't even further to climb!

Of course it would also be fair to say that the market hasn't risen in a linear fashion over the past quarter of a century, but what I think is undeniable is this ultimate proof of the superb returns that property investment has consistently provided.

Perhaps needless to say, we'd be delighted to discuss how you can make the most of the situation, so please don't hesitate to contact us today.

Dominic Nicoli