Property Listing:
1215 Stanford Ave, Palo Alto, CA 94306
Background
Property Type & Client Needs
The client was a first-time homebuyer with a budget of only $2.6M, but with a clear goal: purchasing a home within the Palo Alto school district. However, home prices in this area typically exceed $3M, leaving no available options within budget. Due to financial constraints, the client was considered a “difficult buyer”, having repeatedly failed to secure a purchase over four months. Each time, their offer fell short of the final sale price by approximately $300K, leading to a growing sense of frustration.
Challenges
- Significant gap between budget and market prices, making the goal nearly impossible to achieve.
- Limited housing inventory, with the client having high expectations for property condition and location.
- Funding complications: The client held $1.2M in Tesla stock, and liquidating it for cash would trigger a massive $600K capital gains tax burden.
Solution
Identifying the Right Opportunity
Cindy keenly identified a historic property near Stanford University, which had been relisted due to a previous buyer backing out. Through in-depth research, she discovered that the seller was in the midst of a divorce and eager to close quickly with an all-cash offer, presenting a rare opportunity for negotiation.
Innovative Strategy & Expert Negotiation
- Strategic Planning: Cindy devised a bridge loan solution, effectively structuring the $2.4M purchase as an all-cash offer. This not only met the seller’s need for a fast, cash closing but also spared the client from selling Tesla stock, avoiding the $600K capital gains tax.
- Efficient Execution: Cindy swiftly coordinated with a bridge loan provider, ensuring funds were readily available. She also maintained seamless communication with the seller’s agent, addressing concerns through a well-structured contract and clear terms to facilitate a smooth transaction.
- Masterful Negotiation: Leveraging her exceptional negotiation skills, Cindy successfully negotiated the price down from $2.8M to $2.4M, securing a $400K discount off the listing price.
Results
Key Achievements
✅ Client purchased a Palo Alto school district home for $2.4M, saving $400K off the listing price.
✅ Avoided a $600K capital gains tax liability by preserving Tesla stock holdings.
✅ Tesla stock later doubled in value, significantly boosting the client's family net worth.
✅ The acquired property is in a prime location with high potential for future appreciation, further enhanced by renovation recommendations from Cindy.
Client Testimonial
The client highly praised Cindy’s services, calling her strategy “turning the impossible into reality”. They frequently shared their success story to promote Cindy’s expertise, leading to numerous new client referrals. This heartfelt recommendation stands as the ultimate recognition of Cindy’s professionalism and dedication.
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