FREQUENTLY ASKED QUESTIONS
The Silicon Valley real estate market is changing fast—faster than most buyers and sellers can keep up with.
That’s why we’ve put together this straightforward Q&A guide, built around the questions we are asked most by clients navigating the South Bay, San Jose, and surrounding Silicon Valley communities.
Financing & Appraisal Realities
Why do appraisals come in low during hot markets?
Appraisals rely on closed sales. In a fast moving market where values are escalating quickly, the appraisals cannot keep up to the current value as the appraisers are looking at history.
What happens if an appraisal is lower than the offer price?
It depends on how the offer is written. In our area, many buyers agree to cover the gap in cash. Otherwise, if there is a contingency, one can attempt to renegotiate the price, or cancel the contract.
Why do local lenders often outperform national banks here?
They understand local pricing norms and can possibly close faster in competitive situations.
Is cash always king in the South Bay?
Cash is attractive, but strong conventional financing with clean terms can compete effectively.
Why do jumbo loans work differently here?
High property values mean many buyers use jumbo products with stricter underwriting timelines.
Title, Escrow & Legal Quirks
Title, Escrow & Legal Quirks
It reveals liens, easements, and ownership issues that could affect future resale or use. It is important to review this report as soon as the Prelim is available.
Why are easements common in South Bay properties?
Very often they are used for utility access, but can also be shared driveways, and condos and townhomes have them to accommodate the use of common area.
What is a seller rent-back?
Sellers can negotiate to stay after closing (often 30–60 days) to transition to their new home smoothly. This can be at a cost or the buyer can waive the cost as part of negotiating.
Can escrow timelines be shortened here?
Yes—some lenders can accommodate 14-day or less closings in competitive scenarios.
Why is title insurance especially important in older neighborhoods?
Historic ownership transfers and unrecorded changes can create hidden risks.
Selling Strategy & Preparation
Why do sellers sometimes list below market value?
Strategic underpricing can trigger multiple offers and drive the final price higher.
Does staging really matter in Silicon Valley?
Yes. Buyers pay premiums for homes that feel move-in ready. They also have an emotional appeal and can help in visualizing furniture placement.
Why do some listings avoid offer review dates?
It can create urgency and attract early, strong offers or if the seller or sellers’ agent feels that demand is not strong for this particular home.
Is it worth selling during the holidays in the South Bay?
As the inventory reduces, the serious buyers are still out looking which can produce a sale. We often do avoid listing too close to the end of the year unless the sellers have pressure to move quickly.
Why do sellers hesitate to accept FHA or VA offers?
These loans might have stricter appraisal and condition requirements, so it is important to understand the differences and speak with the buyer’s lender before acceptance to be prepared for the process.
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