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.
MICRO-LOCATION & PRICE DISTORTIONS (WHY BLOCKS MATTER MORE THAN CITIES)
Why can two identical homes in the same zip code differ by $300,000+ in value?
South Bay pricing is driven by micro-boundaries—elementary school assignment (not district), walkability to specific downtown corridors, street traffic patterns, and even whether a home is on the “preferred side” of a busy road. Buyers pay premiums for homes on quieter interior streets, even if the zip code is the same.
How do “school boundary shifts” affect resale risk?
While districts remain the same, elementary attendance boundaries can change. Buyers often pay a premium assuming permanence. Savvy buyers verify directly with the district rather than relying on MLS data.
Why are corner lots sometimes discounted despite larger size?
Corner lots may have increased noise, less privacy, limited backyard usability, and additional sidewalk maintenance—factors that reduce buyer demand in family-focused neighborhoods.
Why does street parking availability influence offer prices?
Many South Bay neighborhoods were built pre-multi-car households. Streets with limited curb space affect daily livability and resale appeal, especially for buyers with teenagers or extended family.
How do “flight path zones” quietly affect values?
Proximity to San Jose International Airport flight paths impacts noise levels. Even when not obvious during showings, experienced buyers factor this into long-term comfort and resale.
OFFER STRUCTURE PSYCHOLOGY (WHY TERMS WIN OVER PRICE)
Why do sellers favor offers with appraisal gap language?
In rapidly appreciating pockets (Willow Glen, West San Jose, Cupertino), sellers fear appraisals lagging behind bidding wars. Appraisal gap coverage or waiver of the appraisal contingency reduces deal-fallout risk.
Why is a 30-day close sometimes weaker than a 21 or 14-day close?
A longer escrow signals potential financing complexity. Short escrows demonstrate strong lender confidence and buyer readiness.
How does a free rent-back influence net proceeds?
Sellers avoid temporary housing costs, moving storage, and stress—often valuing rent-backs higher than small price increases.
Why do sellers prefer local lenders even with identical loan terms?
Local lenders understand South Bay appraisal norms, jumbo loan requirements, and escrow speed—critical in competitive markets.
Why are escalation clauses less common here?
Sellers prefer transparent “best and final” offers. Escalation clauses can complicate disclosure and counter-offer strategy and not advised.
RARE BUT IMPORTANT CONSIDERATIONS
What happens if multiple buyers submit identical offers?
Sellers may request “best and final” or select based on terms and trust.
Can a seller cancel after accepting an offer?
Very limited circumstances—California heavily favors buyer protections once accepted.
Why do some homes sell off-market?
Privacy, testing pricing, or targeting specific buyer networks. Unless there is a privacy issue, it is often recommended to expose the home adequately to achieve an offer at the highest market value.
Are “pocket listings” common in the South Bay?
They exist but are regulated; most sellers still benefit from full market exposure.
What’s the biggest misconception about South Bay real estate?
That it’s purely about price—when in reality, strategy, timing, and expertise matter just as much.