Silicon Valley Frontlines: Real Estate in the Valley ... My Personal Story This Year, Part 1

I've been looking for a buyer for my townhouse in Mountain View for a few months now. Let's face it, not an ideal time to sell but my experience is an interesting example of the state of the market. And lessons learned.

I listed my unit for $850k in mid-March. This after doing quite a bit of research on Zillow, Trulia and other sites, visiting other open houses, talking to realtors, looking at new and resale properties, prior sales in my small complex and so on. I thought it was a pretty informed price, although I'm realistic enough to know that all these sources reflect history and no-one can say exactly what will happen with your property at any particular time in any specific market.

I also knew that the marketing strategy would be particularly important. When times are tough you need to find every angle and spare no effort to find buyers for your product - no different to the startups I work with every day.

Mistake number one - hiring the wrong realtor. Family friend, husband is a general contractor who remodeled the other house I still own in Los Altos. Helped me buy the townhouse in 2006 and did a great job. Her marketing strategy now - list it on MLS and a few other places linked to MLS, hold a couple of open houses and .... that's it. Refuses to hold any more open houses unless I reduce the price 8% or more. Says they don't work - only 2% or so of sales come through holding open houses. While this may be true, what's also then clear is that without open houses you don't get that 2%. Basically not hungry, not aggressive. Would being hungry and aggressive get a buyer in this market? Maybe not even then - but surely more likely than standing back and doing nothing.

Mistake number two - assuming my realtor actually knows something about internet-based real estate marketing. Not aware that a listing on Trulia doesn't happen automatically by listing on MLS. Not aware that using free, easy tools like Postlets gets the property on lots of other sites (Craigslist, Facebook, Zillow, Trulia, Oodle, Google Base, Twitter etc) in one simple post. Viral, Web2.0 marketing, right?

So I get her to put all the listings out there and then hold the open houses myself (all the signs out, publicized online on the various sites). What do I have to lose? The next weekend I get a couple dozen people coming by, some staying a long time (beginning to think I should have offered then tea and sandwiches). Some with realtors in tow. But no offers and not even an inquiry about making an offer. A couple of weeks later, I hold one more open house. Nobody comes. Not one single, solitary person.

I talk with another couple of realtors. One at least works hard. For every house he lists he prints hundreds of flyers and then takes them door-to-door in the neighbourhood - every week. Why? He figures people who already live in the neighbourhood will tell their friends who might be interested in moving to the area. Cynically, of course, I know its also nicely promoting his name around the community as someone who is selected to sell local properties. But, you know, its still a lot of work and is more likely to turn up a buyer than doing nothing.

Also now becoming clear - despite record low interest rates, and despite having excellent credit ratings in many cases, people are just not buying. Period. Thirty properties in my price range and general size have been listed in Mountain View in the last six months. Only three have sold. That's it. People just don't want to make the commitment - job uncertainty and a fear/hope that prices will drop further. There's no confidence. Would having a better realtor have helped? Maybe, but unlikely.

By the way, I should say its a beautiful place I'm selling. 4 bedrooms, 3 full bathrooms, totally remodeled top to bottom, pool, gardens, best schools. In a "normal" market, this would sell easily.

So now what?