Jim Arbeed, Coldwell Banker’s top agent for Hillsborough, has been confident in the area even through the economic downturn. And now, things are really picking up.
Last year had the best real estate market the area has seen in four years, with an all-time low in interest rates, plus an influx of international money coming into the area, Arbeed states in his year-end review. There are fewer active listings the previous years, and they’re now more expensive—but this helps guarantee the market’s security.
The San Mateo County town of Hillsborough lies right outside the heart of Silicon Valley and is close to San Francisco. As a longtime resident of Hillsborough himself, Arbeed and his family have a true love for the town. Location, location, location—just north of the booming high-tech sector and south of the City will keep Hillsborough in high demand, Arbeed says.
“It’s very important to focus on a specific area so that you become an expert,” Arbeed says. He moved to the area in 1976 from San Francisco, and lives there now with his wife and two children. Along with being the top agent at Coldwell Banker in Hillsborough, Arbeed is among the Wall Street Journal’s Top 100 realtors and has been awarded the International President’s Premier award, putting him in the top 1 percent of 126,000 agents internationally.
Areas like Hillsborough provide a long-term safe haven for homeowners and investors alike, Arbeed says. “There are few locations like Hillsborough that provide stability in volatile markets and during economic downturn,” Arbeed wrote in his 2011 market review.
List recovery prices stayed above 94 percent in the last eight years, demand was consistent, inventory was limited, and higher-end homes were less affected in general.
When giving clients advice, he said, the agent should provide data and “show why I feel you should be paying this for this property,” Arbeed said. “So you give them as much data as possible.”
Arbeed, an engineer by training, says the analytical background helps him price properties very accurately, and reason with his clients on why they should pay a certain price for a property so as to not get hurt.
“I can usually be very accurate with pricing, which really benefits my clients,” Arbeed said. “Statistics show, if you overprice by even 5 percent, even in today’s market, which is strong, you could rule out 50 percent of the potential buyers—that’s huge.”
“That’s why there are still properties that are sitting out in this very strong market, because they’re overpriced, at all different price points, not just the high end,” Arbeed said. “It doesn’t matter how the market is, you still have to price right, commensurate with the market. That’s why it’s important to be knowledgeable of your local market.”
“Every seller wants to price their house higher than it’s worth, that’s normal; and every buyer wants to pay less,” Arbeed said.
Sellers always want to price higher, and it’s the agent’s job to help them find the best price—one that doesn’t hurt their cost.
Buyers, on the other hand, obviously want to pay less, but a knowledgeable agent should give good advice so that, even if they’re paying a little more, the buyer is able to get a property—but without overpaying. “So if they have to sell it in a year or two they don’t lose money on it; I think, to me, that’s even more important,” Arbeed says.
Location isn’t just about the nearby cities—a good percent of Silicon Valley buyers have traditionally been families, and international and high-tech buyers are making up much more of the market now. Finding the right neighborhood or city for the client’s lifestyle requires hyper-local knowledge.
“That comes back to knowing your area more than anything else, so you can give them local-market market knowledge,” Arbeed said.
“It’s hard to geographically cover a large area and call yourself an expert in every area,” Arbeed said. “Otherwise you’re all over the place, you can’t have knowledge of every property that’s sold, all the comps, so it’s very important to focus on a specific area so that you become an expert.”
And since many buyers are from out of town, they'll be relying on the agent for this type of knowledge.
“It’s a big decision—for most people this is the biggest investment in their life,” said Arbeed, who works with a variety of clients from first-time homebuyers to venture capitalists.
“Like there’s a street, and you know that street is busy, or you know [about] the schools that impact your street because people are going to be driving by you in the morning,” Arbeed said. “Local knowledge is very important. Every street, even in Hillsborough, is different.”
A good agent doesn’t just know the neighborhood, but is a reputable agent as well.
“Seller’s agents usually know all the reputable agents in the area,” Arbeed said. A seller’s agent might advise their client on which offers to take based on how reliable the agent representing the deal is.
“Because of his reputation, we know that the deal is going to close and nobody is going to play games,” Arbeed said as an example.
Everything comes down to price. However, if your bid ties, but you have better terms or a more reputable agent, you just might win out.
As a realtor, Arbeed says he’s in the service industry. “That’s what we do, we facilitate things for people.”
“The rest is up to the market,” Arbeed said. “You can’t control the market. But if you do your job, the market will do its job—usually.”
With additional reporting by David Zhang
