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.
Local Market Nuances & Micro-Trends
Why do two homes on the same street sell at very different prices?
There are many elements contributing to a home’s market value. Price is heavily influenced by condition and size, school boundaries, lot orientation, utility easements, and even which side of the street falls into a preferred elementary district.
Do tech company announcements really affect home prices?
Yes. Hiring freezes, layoffs, or return-to-office mandates from major employers like Apple, Google, or Nvidia can impact buyer demand -especially in nearby zip codes.
Why are buyers willing to waive contingencies here more than in other areas?
Inventory scarcity and long-term appreciation expectations push buyers to take calculated risks to remain competitive. The competitive nature of multiple offers causes the buyers to strengthen their offer to stand out.
Does proximity to Caltrain or light rail always increase value?
Not always. Walkable distance helps, but noise, crossings, and parking congestion can offset the benefit.
Why do homes near top schools sometimes take longer to sell?
For the most part, top school districts are desirable. If a home is too close, the affects of added traffic and noise can be an objection.
Offer Strategy & Negotiation Surprises
Why do sellers prefer buyers with large down payments, even if financing is solid?
It is believe that larger down payments signal lower risk of appraisal shortfalls in a fast-moving market.
Is a higher offer price always better than flexible terms?
No. Faster closings, free rent-backs, or waived contingencies often win in competitive situations.
Why do some sellers counter all offers instead of accepting the highest one?
Sellers may be fishing for improved terms, cleaner contingencies, or stronger proof of funds.
Sellers may be fishing for improved terms, cleaner contingencies, or stronger proof of funds.
Yes. Weak financing, unclear contingencies, or lack of local lender familiarity can affect the seller’s choice. Price is only one of the factors under consideration.
Why do agents request “non-price terms” upfront?
The strong buyers’ agents are anxious to structure the offer in ways that benefit the seller (short or longer closes, seller “rent-back”, etc) as terms can matter as much as the price.
Inspections, Disclosures & Property Conditions
Why are inspections often done before making an offer?
Sellers frequently provide pre-sale inspections to reduce uncertainty and speed up the transaction. This way the buyers can formulate their offer based on factual, 3rd party information and opinions regarding the condition of the property. This can eliminate any “re-negotiating” during escrow.
What is a “Section 1” termite issue and why does it matter?
It refers to active infestation or damage caused by wood destroying organism, most commonly termites, beetles or water.
Why don’t sellers always fix major issues before listing?
Many buyers prefer credits or pricing adjustments rather than seller-managed repairs. The seller can sell a home in its “current or As-Is condition”.
Are older South Bay homes riskier to buy?
No, not generally. Many have superior construction, larger lots, and established neighborhoods—but may need system upgrades.
Why is sewer lateral inspection required in some areas?
Some cities have an ordinance requiring the seller to do an inspection prior to sale. Tree roots and aging pipes are common; repairs can be costly and unexpected.
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