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So you are ready to move out and sell your home. And you found yourself a real estate agent to help save time, expenses, and the headache of navigating the myriad of details that go into putting a house on the market. But not all agents have the professional experience necessary to sell your home quickly and for the highest price. Or even worse, they are lazy. Here are 10 best practices that a good listing agent will use to get the best price for your home:

1. Conduct a pre-sale inspection with the seller

A good listing agent should meet with the seller and do a walk-through of the property. With a fine-toothed comb, both of you should look for problem areas that can be easily fixed before getting professional inspections and listing your home.

Few agents are willing to do the extra work of a pre-sale inspection, but fixing a leaky faucet or other easy to address problems beforehand will mean a cleaner report when the professional inspector comes through, and potential buyers see less initial issues with your home.

2. Getting and reviewing necessary professional home inspections

Depending on the age, size, location, and condition of a home, an agent will be able to advise what are the required and recommend home inspections. Some common inspections are termite, general property, roof, and chimney. They are not always required on the seller side but it leaves a better impression if you do. (Buyers note: get your own inspection to verify a seller’s report.)

Also, without all the necessary inspections, a home cannot be accurately valued. In this situation the buyer makes an offer and then conducts an inspection only to find out something the seller didn’t know. The buyer will then renegotiate a lower
price or, at worst, take back the offer.

3. Price it right from the start

We all want our home to sell for what we have personally invested in it, but overpricing will just make it harder to sell. Buyers are weary of a house that is not priced accurately, which results in less offers, a prolonged marketing period, makes the competition look better, and may eventually sell for below market value.

A listing agent should know the value of a home based on the local market and price it accordingly, maybe even modestly, to create demand and let buyers push up the price through multiple offers.

4. High-quality marketing material

Make your home look its best. If your home needs it, your agent should put you in contact with a home staging professional to target your buyer market. For advertising work, an experienced home photographer and graphic designer can help present the strengths of your home.

5. Generate buyer interest through the Internet

A 2009 study by the National Association of Realtors found that 90% of buyers use the Internet when searching for a home. There is no reason why your agent shouldn’t be taking advantage of this large and affordable medium.

Internet marketing should include a dedicated home website, with a slide show or video tour of the home, and advertising through various social media and syndicated websites.

With a larger audience, your home has a higher
chance of receiving multiple offers and, ultimately, a
higher selling price.

6. Prepare a listing disclosure package before going on the market

Without a properly prepared disclosure package how can a potential buyer have all the information they need to know about pricing and specific details of a home. A disclosure package needs to include seller requirements, previous inspections and modifications, HOA documents (if any), and a seller wish list.

7. A seller wish list

This gives basic instructions of how to structure a potential offer, but more importantly, lets the buyer know conditions or expectations that make for a strong offer. For example, the seller may want to sell the house as-is, or rent back the house after it has been sold. A careless agent wouldn’t take the time to make a wish list and instead let a potential buyer set the offer conditions.

8. Setting up a broker tour

One of the advantages of having an agent is holding a broker tour. It’s an opportunity to have local real estate agents view a home and receive valuable feedback on the pricing, condition of the property, and network with agents who have potential buyers. The more qualified buyers looking at a home will drive demand and increase perceived value. If your agent isn’t doing this, they aren’t doing one of their primary jobs: to market the home.

9. Following up after a broker or open house tour

A listing agent should contact any agents with buyers or potential buyers who might be interested in putting down an offer. A less proactive agent would wait for offers to come in.

Just as important as receiving offers, is knowing how many
potential buyers there are. It helps in negotiations by
leveraging the seller’s position.

10. Track buyer progress during and after escrow period

An offer doesn’t mean your agent’s work is done. There are many factors that can unravel an offer from the buyer side that a seller should be aware of.

A good portion of why home purchases fall apart is because of financing. The buyer may not be qualified to purchase the home even though they are pre-approved. An inferior lender may not have the loan approved quick enough or not understand loan qualification requirements, which
might happen when a lender is not local.

In addition, your listing agent should regularly contact the buyer’s agent to make sure they finish home inspections and don’t miss contract deadlines during the escrow period. It is a lot harder to sell a home if it goes pending and then comes back on the market because of a buyer issue that could have been prevented by the listing agent doing the research beforehand.

Recommended Reading:

What People Think About Before Looking for a Home
Quick Fixes to Sell Your House Faster
Why Some Houses Don’t Sell: A Buyer’s Perspective
Games Real Estate Agents Play With Home Buyers
Tools for Protecting Yourself During a Home Purchase

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August 25, 2010 Update: As the banner says, we won! Though I don’t have a speech ready, I’d at least like to thank all our blog readers and fans on Facebook for really turning out and pushing us ahead of the competition. The runner-up, CJ Brasiel, runs a great blog and I’m sure she’ll be snapping at our blog heels come next year. Also, the iPad raffle winner will be announced at 9 a.m. Aug. 30, 2010, on the Rainmaker Properties company site. Thanks again to all our supporters, and if you have any comments or real estate questions, let us know.

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August 17, 2010: That’s right! Our blog has been nominated for the “People’s Choice Best Real Estate Blog Award” in San Jose, by Zillow.com. We’d be delighted if you put in your vote for us – actually, you can vote once every 24 hours. But hurry, you only have until noon PST on Wednesday, August 25 to do so.

Oh yeah, if we win the award everyone who voted will be eligible for our Apple iPad (Wi-Fi, 16GB) raffle. Here is how to enter: (1) follow this Zillow link or click the badge above, and vote for 1SiliconValley; (2) if you are not already a fan of Rainmaker Properties on Facebook, we encourage you to become one by clicking the “like” button (not a requirement for contest entry); (3) for every time that you vote, write a comment on our Facebook wall, which will count as your raffle entry – limit one raffle entry per day; (4) lastly, if our blog wins the Zillow award, each one of your entries will be entered into the iPad raffle and the winner will be announced within two weeks of the award date.

So drop your vote, and thanks to all our readers!

A couple items of note:
- Contest and raffle subject to Rainmaker Properties Best Blog Contest Official Rules. (Opens pdf in new window or right-click to save.)
- Voting on Zillow requires flash. Sorry iPhone and iPad users.

We’ll cover total sales volume, sale price to listing price ratio, days on market, median selling price, and number of homes sold, using data on single-family homes off of MLS listings Inc.

First, let’s have a look at:
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Total sales volume clearly shows that over the past two-plus years the housing market dropped after peaking in 2008, then slowly bounded up and down, successively higher each quarter. The second quarter of this year really reflects a trend towards returned growth in the housing market of our local cities.

One additional interest to point out is that although most of the cities have not yet reached 2008 sales volumes, Mountain View has surpassed it.

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The sales price to list price ratio is one way to show buyer and seller perceptions: above 100% is a seller’s market, and buyers are paying above the listing price to win a house; below 100% is a buyer’s market, and sellers are having to reduce their listing price in order to sell a house. The closer a city is to 100% the more the market is balanced.

On a house that is listed for $1 million, a 1% change would amount to $10,000.

In both quarters this year, Mountain View and Sunnyvale have both been above 100%, a result of high demand for entry-level homes. Palo Alto and Los Altos, the more desirable and expensive of the cities, are still under 100% (Los Altos is at 98.21%, recovering from a glaring low of 93.56% in the beginning of 2009).

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The Average days on market is a good indicator of buyer demand and the overall health of the housing market. From the graph, we can see all four cities returning nearly to 2008 levels this quarter, with Palo Alto and Los Altos realizing the greatest second quarter drops. This is another signal that the market is shifting to a seller’s market, making it more difficult, once again, for buyers to get find a good deal.

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The median selling price can be used in conjunction to the earlier ratio graph. Palo Alto, Mountain View, and Sunnyvale, which are all near or above a 100% ratio, have median prices that are rising. Los Altos, however, is still far from a 100% ratio and its median sales price remains stagnate.

Currently all four cities are off second quarter results in 2008 by more than 5% — Los Altos is even more at nearly 13% under — so buyers can still expect to save money due to depreciated home values.

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The number of homes sold for each city has either nearly returned to 2008 levels, or surpassed it in the case of Mountain View, which is 50% higher this quarter than the same period in 2008. Part of the reasoning is traditionally more homes go on sale and are bought during the summer months. But this also a result of more sellers willing to sell their homes in a stronger market and a release of pent-up buyer demand.

Relate Posts:
Comparing Real Estate Trends of Local Cities — First Quarter of 2010
Silicon Valley Housing Market Update – July 2007
Silicon Valley Housing Market Update – April 2007

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_{(single-family home data from MLS listings Inc.)}

Because Palo Alto has a wide range of home prices, the entry-level market remained strong as buyers looked for bargains and the high-end market slowly recovered through the second quarter of 2010.

The median sales price in Palo Alto is 5.3% lower than the same period in 2008, at $1,468,000. A huge jump of 82.2% from last quarter and just 5.5% lower than in 2008 was realized in total sales volume, at $205,188,388. Average days on market is just over a month and there were 123 sales this past quarter, similar to 2008.

Palo Alto holds its title as a premier housing market with the highest total sales volume of our four comparison cities, and will continue to become increasingly difficult for buyers to enter the market as the sales price to list price ratio continues its rise to 100%.

_{(single-family home data from MLS listings Inc.)}

Mountain View serves as a good example in our four comparison cities to see that the strongest competition after the housing crisis is for entry- and mid-range homes.

The standout numbers this quarter for Mountain View are 102 closed sales, 121.7% more than last quarter and 50% more than 2008; and $98.5 million in total sales volume, 136.3% more than last quarter and 35.3% more than 2008.

Median sales prices and average days on market are creeping towards 2008 levels. The sales price to list price ratio is just above 100%, meaning seller and buyer perceptions are balanced, though slightly in favor of the seller.

_{(single-family home data from MLS listings Inc.)}

Los Altos burned through the summer months of the second quarter this year as it showed strong signs towards a sustained housing market recovery.

The median sales price slipped 1.4% from the quarter before, to $1.5 million. But the exciting news for home sellers is the precipitous drop in average days on market to 41, from 73 the quarter before, and 98 closed sales, which is equivalent to the same quarter in 2008. The sales price to list price ratio is 98.21%, meaning that more and more buyers are paying closer to list price, reflecting a shift to balanced buyer and seller perceptions. Total sales volume is $160,352,888, which is 17.3% lower compared to the same period in 2008.

Overall, Los Altos realized the greatest drop in mean sales price of our four comparison cities and has yet to recover the nearly 13% difference in price from the same time period in 2008 — meaning home values are still depreciated in the area.

_{(single-family home data from MLS listings Inc.)}

Sunnyvale is one of two cities in our comparison that has turned into a seller’s market the past two quarters. Perhaps it is the urgency of the buyers to find an entry-level house (Sunnyvale has the lowest median sales price of our four comparison cities) before the effects of the housing crisis completely recede that is driving demand.

The median sales price jumped 12.7% compared to last quarter, to $851,000. Average days on market remained the same as last quarter, while number of homes sold was just higher than the same period in 2008, at 177. Sales price to list price ratio is 100.95%, meaning most sellers are encountering multiple offers over listing price.

Although the median sales price and total sales volume are still lagging compared to 2008 numbers, Sunnyvale is reporting strong numbers in other areas this quarter, showing that the city has pushed out of its slump.

_{(Redwood Gate houses)}

The corner of El Camino Real and West Charleston Road has undergone a lot of real estate development in the past few years. First it was the 181-unit Arbor Real on the corner and now on the old Elks Club property, beside Arbor Real, is the new Redwood Gate by SummerHill Homes development. (map.)

The properties are listed as detached and attached single-family homes, which are unlike the the condominiums and townhouses available at the previous housing developments we have reviewed, Altaire and Sterling Park.

Redwood Gate may have better features, a better location and more square feet than its “competitors,” but it also has a higher price tag – $1.15 million to $1.499 million. Continue reading to find out more about this Silicon Valley real estate development and see if it lives up to the old adage: you get what you pay for.

overview | pricing | highlights | concerns | comparables | takeaway

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Overview

_{(Half-acre park at Redwood Gate)}

Redwood Gate is one of the smaller real estate developments in Palo Alto with just 35 detached and 10 attached single-family homes, plus a half-acre park.

Construction of the single-family homes at Redwood Gate started in 2009 and will be completed by the first quarter of 2011. The neighboring Elks Lodge is also under construction and will be completed by October 2011.

As of June 2010, 26 homes have sold and nine homes are currently available; in the future, the five homes in the park location, two of the attached homes and the three remaining model homes will be available.

The development is located in the Charleston Meadows neighborhood and close to the neighborhood’s three schools — Juana Briones Elementary, Terman Middle School and Gunn High School — that are all less than a mile away, and off of Arastradero road.

As a further incentive to visit Redwood Gate, receive a $50 Visa gift card for scheduling a tour of the properties with one of our agents in the month of July.

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Details and Pricing

Redwood Gate properties are listed on MLS Listings Inc. as either attached or detached single-family homes, but sold to homebuyers under condo ownership and approved for loans under the detached condo category. This is the only way that developers could get approval in Palo Alto for building homes that have a large living space on a small lot. Otherwise, the residences resemble the single-family homes they are priced at — the median price for homes in Charleston Meadows in 2009 was $1.25 million; condos were $801,000.

Being in a single-family home, instead of the condos and townhouses found at Altaire and Sterling Park, means that the homes do not share walls (even the duet-style homes, which are connected but have air space between walls), and the homeowner owns the house along with the land underneath and the yard for 10 feet. Homeowners, also, own a percentage of the common area through a $202 monthly HOA fee, which includes landscaping, all water usage, garbage collection, exterior property insurance.

Along with a difference on paper between Sterling and Altaire, is the difference when you see the property. Redwood Gate properties are about $500,000 more than a comparable townhouse at Altaire, but also have a two-car garage, large patio space, high ceilings, an extra loft room and 500 square feet more.

All seven floor plan options are still available at Redwood Gate as of June 2010. Plans range from three bedrooms two-and-a-half-baths and two stories through five bedrooms three-and-a-half-baths and three stories. Residence 1A has 1,7775 square feet all the way through residence 7B with 2,380 square feet, and listed at $1.15 million through $1.42 million, respectively. Upgradeable features are also an option.

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Highlights

_{(Model home interior of a Redwood Gate home)}

New and modern homes. We’ve already mentioned the extra space and privacy that Redwood Gate allows, which means there is more flexibility for growing families. A new build means modern features, including Kohler sinks and faucets, GE stainless steel appliances, maple cabinetry, granite countertops, volume ceilings. Homes are also designed to be GreenPoint Rated, which help in energy efficiency and are environmentally friendly.

Smaller development size means a closer community and less hassle over parking spots, including the 14 guest spots. It is also surrounded by another housing development, the Elks lodge, and a pleasant residential area on Wilkie Way in the rear.

Good location in Palo Alto. If you ignore the busy El Camino Real intersection, Redwood Gate is better and more centrally located in Palo Alto over Altaire and Sterling Park. It is walking distance both to schools and Robles and Briones Park, and one mile from Charleston Shopping Center and San Antonio Shopping Center.

Strong home values. Because Redwood Gate properties sell as single-family homes their value will be more stable over the condo and townhouse market. In addition, Palo Alto, as we have seen, is one of the strongest real estate markets in Silicon Valley.

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Concerns

Traffic on El Camino Real can be difficult, but noise shouldn’t be an issue because the Elks Lodge lies between Redwood Gate and the street.

Limited parking could be a pain if you plan on having more than two cars. Besides the 2-car garages, there are only 14 guest spots available here.

It is a high purchase price for condo ownership at Redwood Gate when considering that the median selling price in 2009 for homes in the Charleston Meadows neighborhood was $1.2 million. Having said that, the homes have been selling at a rate of two a month, so demand is clearly there. Another consideration is that standard homes under $1.2 million in Palo Alto are not going to be new and most likely need repairs or upgrades, and lack the premium build and features that a new development like Redwood Gate has.

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Comparables

Altaire and Sterling Park aren’t comparable since price and features differ so much as we covered under the pricing details category. The locations of these properties are less than ideal since both sit near 101 and at the edges of Palo Alto. Another option for homebuyers in this price range would be to consider an entry-level home.

In the past three months (April, May, June 2010), the median price in south Palo Alto for single-family homes has been $1.26 million. Of those homes that have sold, the average age is 56 years old, average interior square footage is 1,779 and average lot size is 7,200 square feet.

So Redwood Gate homes have equivalent interior space and come with all the advantages of a new build and low maintenance, but on the other hand, lack in lot size and ability to customize when compared to a traditional home in Palo Alto.

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Takeaway

These homes are generally targeted for people that are moving up from a condo or townhouse and need the extra space for a growing family. The residences offer the benefits of a new community development but also the future stability in home values that a single-family home has in Palo Alto. Of course, Redwood Gate prices reflect these criteria and it certainly is a quality development, but the high-price tag could be a determining factor for a lot of potential homebuyers.

Feel free to contact us for more specific information and an opportunity to tour Redwood Gate in-person (plus a $50 Visa card if you visit in July), or just to find out more about our unique Silicon Valley real estate services.

_{(Sterling Park exterior)}

Sterling Park is another of the recent housing developments in Palo Alto, which also includes Altaire and Redwood Gate. Located in the Midtown neighborhood, the use of mixed housing and two on-site parks helps Sterling avoid the compact feeling of standard developments in Silicon Valley and lets its residents enjoy some extra space. Click through to find out more about the property.

overview | pricing | highlights | concerns | competition | takeaway

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Overview

Parallel to the 101 freeway and on the corner of West Bayshore Road and Loma Verde Avenue, 96 units compose the new Sterling Park development, which is slated to be completed early 2011.

The development is broken down by 28 detached single-family homes, 39 townhouses and 29 condominiums. Potential buyers should be aware, however, that all its single-family homes are sold out, and only one remaining three-bedroom and two remaining two-bedroom townhouses are available as of June 2010. That leaves the 29 one-and three-bedroom condominiums left, which will be released for sale this October.

The six and a half acre site accomplishes a neighborhood feel with wider streets, mixture of home types, focus on the two central parks, and a nose mitigation wall beside the 101 freeway to reduce the noise and view of passing traffic.

The Midtown neighborhood, which Sterling is located in, is known for its small-town feel and there is a variety of positive things to say about the nearby schools — Palo Verde Elementary, Jane Lathrop Stanford and Henry Gunn High School.

For basic information, available floor plans, features and sales information about Sterling you can visit their web site.

If you are ready to visit the property for your first time, consider representation from a local Silicon Valley real estate agent who can provide information about local comparable properties and help in sales negotiations. The second half of an older post I did goes over these considerations.

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Details and Pricing

_{Sterling Park site map (Click image to enlarge in new window.)}

The two remaining two-bedroom three-bathroom and one-car garage (floor plan 4) townhouses start just under $800,000. The last three-bedroom three-and-a-half bathroom and two-car garage (floor plan 5) townhouse is selling for under $900,000.

The upcoming 29 condominiums will start at approximately $600,000 when released late 2010. They will have either one or three levels, with a respective amount of bedrooms; and range from 1,050 square feet to 1,800 square feet.

In addition, all properties include either a one-or two-car garage. Street parking will be limited to the 39 visitor parking spots and reserved spots that are estimated to sell for $5,000 each.

Homeowner’s association fees will initially be $325 a month, but reduced to under $200 once all the homes sell out, which should occur upon the developments completion by mid 2011.

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Highlights

Lots of space. Because Sterling is composed of single-family homes, townhouses and condominiums, two parks and a community recreation center, the scenery is more pleasant than the dense row housing we usually see in developments. Traffic shouldn’t be a problem on West Bayshore Road and most parking inconveniences have been reduced since every property has their own garage.

Affordable, luxurious, green. Prices starting at $600,000 for a condominium in Palo Alto are a strong draw for many first-time buyers. But Sterling also has luxury features such as gourmet kitchens with General Electric appliances and granite countertops, and large master suites. Standard green and energy-efficient features reduce utility bills and result in quieter homes.

A location in the Midtown neighborhood means Sterling is only one mile away from fulfilling basic shopping and restaurants needs at the Midtown shopping center, which includes Longs Drugs, Safeway, Starbucks and Mike’s Cafe. And only half a mile from Greer Park, Seale Park and the Palo Verde Elementary School.

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Concerns

Beside two office buildings and the noisy 101 freeway. The developers did their best to mitigate both these issues by, first, focusing the real estate development inward and towards the parks. Second, noise levels have been reduced by a wall built along the freeway. Lastly, for condos located on Bayshore Road, the developers have taken extra measures to reduce the noise through sound insulation like double-pane windows.

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Competition:

Two other currently competing real estate developments in Palo Alto are Altaire and Redwood Gate. Comparable properties at Altaire are about $100,000 higher and Redwood Gate is mostly detached homes starting above a million. So expect nicer overall building quality and features at those two developments, but both are located at crowded intersections. Redwood Gate has the advantage of being centrally located in Palo Alto, while nearby Altaire is at the boarder of Palo Alto and Mountain View.

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Takeaway

Most buyers looking into Palo Alto already know about its strong real estate market and fantastic school district and API scores. But most are taken aback by the steep Silicon Valley real estate prices, and is why many developments in Palo Alto make it possible for new homebuyers to break into Palo Alto’s prestigious market.

Sterling Park reflects this demand and doesn’t skip on features that should enable the properties to hold their value in the coming years.

Feel free to contact us for more specific information and an opportunity to tour Sterling Park in-person, or just to find out more about our unique Silicon Valley real estate services.
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The graphs cover quarterly results from 2008 to 2010 for single-family homes using data from MLS listings Inc. (link)

Number of homes sold –

It is hard to see how the cities responded to the crisis within this time frame since most home sales drop off during the winter months and spike in summer. But it is clear that home sales sagged in the first quarter of 2009, were slow to return initially, and then eventually returned to similar or stronger numbers by the end of 2009, which have continued through 2010.

Median selling price –

All four cities home prices started to slip at the end of 2008, with the exception of Mountain View, which dropped a couple quarters later. Prices rebounded mid-2009, after cities like Sunnyvale had bottomed out in the beginning of 2009, and have begun to stabilize at a depreciated value. Los Altos, which has the most expensive houses of the four cities*, realized a 20 percent drop from the beginning of 2008 to 2010; Mountain View dropped 17 percent, Palo Alto dropped 11 percent, and Sunnyvale dropped 15 percent.

*Los Altos may have a higher median selling price than Palo Alto, but part of that is the wider range of home prices available in each of the 14 Palo Alto neighborhoods, where the lower-end is selling quickly, and a population that is double the size of Los Altos. (Expect a post covering Palo Alto neighborhoods in the future.)

Average days on market –

Building up to the crisis, average days on market increased for all four cities until the beginning of 2009. Interestingly, Los Altos and Palo Alto numbers are still increasing today, while Sunnyvale and Mountain numbers are dropping. This may be a result of higher priced homes in Los Altos and Palo Alto that tend to stay on the market longer, especially in a recession, in contrast to the strong demand for the greater supply of low priced entry-level homes in Mountain View and Sunnyvale.

_{(Shoreline Lake in Mountain View)}

As in the neighboring cities of Palo Alto and Los Altos, the Mountain View housing market in the first quarter of 2010 has rebounded from the previous year.

The characteristics of Mountain View – situated in Silicon Valley and home to tech companies such as Google, Symantec and Intuit; one of the stronger school districts in California; a friendly downtown area next to Caltrain; and a more affordable single-family home and condominium and townhouse market compared to its northern neighbors – means that homebuyers are returning to the area to take advantage of reduced home prices that have occurred since the real estate crisis a few years back.

In the first quarter of 2010, the median sales price for single-family homes in Mountain View was $875,000, a slight decline from $900,000 in 2009. Though the median sales price dipped, the turnaround for this past quarter was that 50 homes sold with an average days on market of 24 days, compared to 41 sold and 62 days in 2009 during the same time period.

Mountain View home sales and the number of days on market have returned to 2008 levels, before the crisis really showed its teeth, but the median sales price this past quarter is still 20 percent lower than in 2008, which was $1.095 million.

The price range of single-family homes sold in Mountain View this past quarter, from $560,000 to $1.575 million, reflects a more affordable market than Los Altos and Palo Alto.

A strong local condominium and townhouse market

There is a larger market for condos and townhomes in Mountain View compared to Palo Alto and Los Altos, which makes it great for first-time buyers right now, especially when considering the depreciated market and government incentives.

A total of 52 condos and townhomes sold in Mountain View this past quarter at a median sales price of $589,000. Most of them had two or three bedrooms and took up an average of 1,327 square feet. To compare, Palo Alto sold 26 for a median price of $725,000 and Los Altos only sold seven for a median price of $780,000. If we were to take out properties that are less than five years old (in order to compare resale values) there was still 50 properties that sold in Mountain View, 15 in Palo Alto that sold for a median price of $672,000, and just two sold in Los Altos.

What sold for $875,000

A 1,859 square foot, four-bedroom and three-bath house was listed for $875,000 and sold for the same price this past quarter. It is a 10-year-old house and sits on a 3,920-square-foot lot in a cul-de-sac on Plum Court.

^{(Jazz festival in downtown Sunnyvale)}

The Sunnyvale housing market was one of the Bay Area cities that were hit harder by the recent real estate crisis.

Before the crisis hit in the first quarter of 2008, the median sales price for the 121 single-family homes that sold was $976,000 (including three short sales). The following year, the number of single-family homes sold during the first quarter dropped to 100 (including 23 foreclosures and 18 short sales) and the median sales price fell 46 percent, to $530,000.

The north region of Sunnyvale was most affected by the housing crisis, including the 94085 and 94089 area codes. Homes in the 94086 area code were slightly affected; and the homes that weathered the best, with sales in the million plus range, were in the 94087 area code.

This past quarter, 97 homes (including 12 foreclosures) sold for a median price of $820,000. Average days on market was 42 days, down from 85 days in 2009. The price range of home sales starts at $371,000, for a foreclosure home, all the way up to $1.45 million.

Sunnyvale is recovering quickly even though the crisis has had a more dramatic effect on the area compared to some of its neighbors, such as Los Altos and Mountain View. Because Sunnyvale is home to tech companies like Yahoo!, Palm, Inc., and AMD, and has some strong schools, including Cumberland Elementary and Cherry Chase, home prices are expected to return as the market stabilizes.

Homebuyers right now are taking advantage of this time to find good-valued homes before sales above list price become common again, as in the first quarter of 2008, when the average listing price was $964,996 but the average sales price was $979,941. It wasn’t uncommon at that time to find a home selling $100,000 over list price, which was unheard of in 2009 when most homes over a million did not sell at all. In 2010, as in the following example, we are seeing homes selling at those competitive levels again.

What sold for $820,000

A 1,210 square foot, three-bedroom and two-bath house was listed at $750,000 but sold for $820,000 this past quarter. The house was built in 1955 and sits on a 6,600-square-foot lot in Arlington Court. The home featured remodeled kitchen and bathrooms.