A house in Sunnyvale just sold for close to $800,000 over its listing price.
Your eyes do not deceive you: The four-bed, two-bath house — less than 2,000 square feet — listed for $1,688,000 and sold for $2,470,000.
“I think it’s the most anything has ever gone for over asking in Sunnyvale — a record for Sunnyvale,” said Dave Clark, the Keller Williams agent who represented the sellers in the deal. “We anticipated it would go for $2 million, or over $2 million. But we had no idea it would ever go for what it went for.”
This kind of over-bidding is known to happen farther north in cities including Palo Alto, Los Altos and Mountain View. But as those places have grown far too expensive for most buyers, future homeowners have migrated south to Sunnyvale, a once modest community that now finds itself among the Bay Area’s real estate hot spots.
Everywhere prices are increased in 2017. This home was listed at 1.288M, but sold for cash offer 1.531M. I visited, home in original condition, heater was not working and many fixes almost 100k work is there.
Sellers are retiring with such money, leaving mid-states for cheaper location
A couple years back we looked at Cupertino and WSJ prices and wondered why the buyers didn’t buy in Palo Alto. Now we looked at Sunnyvale prices and wondered why they didn’t buy in Cupertino.
I think between 2 to 3M is the maximum for an “average” SFH in South Bay. Anything higher will not move. So we see town after town reached that ceiling and the battle moves to the next town.
So people better grab whatever they can in Santa Clara. Pretty soon we will see the same prices in Santa Clara.
Mini Kalkat of the Troyer Group, the agent for the buyers, specializes in the Sunnyvale market and said comparable homes were selling for around $2.1 million. But the home in question is larger and has a bigger lot. And it’s near many of the tech campuses.
“We did not overpay for it; we paid market value,” Kalkat said. “These are smart, sophisticated buyers buying in a very cosmopolitan area that’s now competing against London and Manhattan and all the places we never thought we’d compete against.”
Some neighbors see the surging prices and want to sell. Others are looking to double down on the neighborhood.
“When our son graduates from high school, we’re thinking of renting our house because we don’t want to give up or sell the property,” homeowner Rosemary Brooks said. “It’s just too valuable.”
You can buy something in PA at 2.5M. From an investment perspective, those people who bought in Cupertino/WSJ lost out. Cupertino and WSJ don’t have comps in the 5M range.
A realtor with CB was pushing me to look closely at Santa Clara 2 years ago. That dude was spot on.
I bought in WSJ considering the history of low price drop during downturn.
SFHs in good school district tend to keep the price well during downturn and to me it was a very important factor.
My house price has gone up by 30% ever since i bought it in 2014. (based on similar home sold price in neighborhood). I guess it has been pretty good investment from my standard.
However, i want to keep it as long as possible. Thus, estimate price doesn’t make much difference.
