Scott Safadi is a real estate professional specializing in property management in Silicon Valley. Scott Safadi knows a boom or a bust when he sees one. As Scott Safadi explains, the housing market is starting to sizzle at a remarkable rate in a few pockets around the country, including his home base in California. In this conversation, Scott Safadi warns potential homebuyers not to get so caught up that they miss the forest for the trees.
Interviewing Experts: Tell readers about your company, CBPM.
Scott Safadi: CBPM is a property management company that serves apartment owners and tenants in the San Francisco Bay Area.
Interviewing Experts: Describe what you have seen happening with the housing market in Silicon Valley.
Scott Safadi: It’s amazing. It really feels like the early 2000s again in Silicon Valley.
Interviewing Experts: So things are hot on the housing front?
Scott Safadi: Yes, houses are selling for way over list price and sellers are getting multiple offers again, some have gotten hundreds of offers.
Interviewing Experts: How much over list price have houses sold for in your area?
Scott Safadi: It is not uncommon for houses to sell for 20 percent over list price right now.
Interviewing Experts: What has sparked this housing activity?
Scott Safadi: A number of factors come into play. There are fewer houses for sale, as owners who were underwater are still recovering and hoping to sell for profit. Also, new home construction is just starting to crawl back.
Interviewing Experts: Have low interest rates helped spur home buying?
Scott Safadi: Yes, record low interest rates and low home prices are attracting people who are financially able, looking to upgrade, or want to get into a home for the first time.
Interviewing Experts: This sounds like a good thing, isn’t it?
Scott Safadi: Yes and no. It’s a great sign that the economy is recovering. On the other hand, people get attached to a boom and bust mentality and it can be devastating.
Interviewing Experts: Can you explain what that means?
Scott Safadi: Buyers get enamored with the thrill of the hunt. In bidding wars for example, buyers end up paying a lot more just because they want to have the winning bid.
Interviewing Experts: What if it’s the perfect house for the buyer?
Scott Safadi: Work with an agent who has your best financial interests in mind, not just their commission. And, hold on, as it could be a bumpy ride.
Interviewing Experts: How do homebuyers choose a good agent?
Scott Safadi: Get a personal referral. Talk to family and friends; they offer the best connections.
Interviewing Experts: What advice do you have for homebuyers?
Scott Safadi: A cautionary tale: Don’t buy out of your price range, consider many different properties, and don’t let a bidding war entice you to spend more than you can afford.
Interviewing Experts: Thanks for your advice!
Scott Safadi: Glad to help homebuyers avoid the disasters of 2008.
About Scott Safadi:
Scott Safadi is a Northern California native who currently lives in Saratoga with his wife and daughter. Scott Safadi experienced both the boom and bust of the housing market in Silicon Valley through the purchase of his own home in 2007 and through his property management business, CBPM. When not immersed in real estate, Scott Safadi enjoys spending time with his family, playing tennis, and backpacking.