SUNNYVALE (KPIX) – We’re used to the buzzing Bay Area real estate market, which shocked us, but recently the selling price of a Sunnyvale home even caught the listing agent off guard.
“By far the craziest I have ever known,” said Joe Polyak, real estate agent for Rise Homes.
READ MORE: SF secures $ 54.7 million to convert SOMA hotel into permanent housing for homeless people
The single-family home on Flin Way, which measures 1,300 square feet with three bedrooms and two bathrooms, just sold for $ 823,000 above its original listing price.
Polyak said the house next door recently sold for $ 2.6 million and that he valued his client’s house at around $ 2 million.
He was stunned when it was sold for $ 2.68 million.
“I could never have imagined that,” Polyak said. “That’s crazy.”
He said he received 35 offers on the day he opened him to offers.
READ MORE: Stormy weather means a rainy and snowy Christmas in Northern California
Gary Shapiro, the senior agent for Shapiro Group at Keller Williams in Los Gatos, said the cause of the Bay Area home price spike right now is high demand and low inventory. He believes the market for strong sellers will continue through 2022. Shapiro believes stocks will improve slightly, but still will not keep pace with demand.
“We are at a point where inventory is at an all time high that I have ever seen and this is my 37th year of full time real estate in Santa Clara County,” Shapiro said.
He also said that Polyak used a common strategy to start the auction war frenzy on Sunnyvale’s house.
“When we are in a sellers market, most agents recommend a low and conservative asking price knowing that the amount of demand will create multiple bids and cause buyers to increase the price,” Shapiro said. “I think the agent and the seller should be extremely happy with the final sale price for such a small house, absolutely.”
“That’s what we did, and that’s what we still do, is put it a little lower,” Polyak said.
He listed the house at $ 1.83 million knowing it would spark a bidding war, but never imagined how high the buyers would go.
NO MORE NEWS: Fairfield Police: Kidnapping suspect dies of self-inflicted gunshot wound during arrest
“We weren’t expecting that and neither were the salespeople, a pleasant surprise, of course,” Polyak said.