Real Estate of Los Altos

Finding a property that fits your needs or evaluating a property for its potential sales price can be a difficult task. Many options are available, but a large percentage of the population begins their search on the internet with literally hundreds of sites available for this purpose.

Websites: The information available about properties over the internet typically lists what is for sale at the moment. The current list of properties for sale has some relevance for buyers but little relevance for sellers. The value of a home is based largely on the value for which other comparable properties have sold. These are proven values as opposed to the values that people think their properties may be worth and stated as a listing price. Until a sale has been made, the true value of a property is unsubstantiated. So beware of the websites that list only the values of current list prices or the websites that let everyone state a value for what they think their property may be worth.

Multiple Listing Services: These types of websites are used by the realtors to establish prices as they contain the most detailed information about current listings and sold listings. They often require an account setup and fees paid in order to see the entire information database but they do let people see a large amount of it for free. Realtors need this information daily, so they pay these fees as part of their business plan.

Value: The proper way to set the value of a particular property is to study the comparable sales for similar properties. The following is of importance in order:

1. Location of the property within a geographic area that has proven similar properties. See the section of this website called “Areas of Los Altos.”
2. Characteristics within the area that are distinctive, such as:
1. On a busy street that will detract from its value
2. Next to a busy community location that may detract from its value
3. Next to a park or other positive amenity that will add to its value.
4. Next to stream or river that may add or detract from its value depending on the situation and flood insurance.
5. On a hillside that may add or detract from its value due to its geological issues or due to a wonderful view.
6. On a corner that may add a nicer backyard but be a traffic or noise  issue.
3. Size of the livable area of the home not including the garage space: This is the number one factor for determining the sales price once the geographic considerations are considered.
4. Condition of the home is the next major factor; a home that has deferred maintenance can reduce the value drastically where a home that has been recently remodeled can increase the value considerably.
5. Size of the lot: Most lots in a particular geographic area are similar in size, but occasionally an abnormally larger or smaller lot can affect the price.
6. Number of bedrooms and baths is the next most important factor. Too many bedrooms and baths in a small area can lead to a cluttered look and feel. Too few can lead to an unusable space.
7. Parking on street, off street, and garage space can be an important factor, especially in an urban environment.
8. Other amenities such as views, swimming pools, extra storage areas, solar panels, home theaters, and wine cellars can all add value to the property.

The easiest way to establish the value of a property is to ask a realtor. If the realtor is representing you as a buyer, remember that they are paid by the seller of the property. If the realtor is being asked to do this for you in order to sell the property, they are hoping that you will sign an agreement for them to sell the house for you. See the section in this website called, “Realtor Fees.”