Procrastinating home sellers who don't list their home quickly after getting wind of seller's market conditions could be left twisting in that very same wind.

In a matter of months, Silicon Valley's real estate market transformed from a buyer's market to a seller's market, and it could just as quickly blow back in the other direction.

"Mistakes sellers make? Waiting too long is a big one. The caveat is not to take too long to prepare or you might miss this market," said Janet Houde, president of the Santa Clara County Association of Realtors.

As recently as October, reports of Silicon Valley's housing market came with falling values and homes that wouldn't sell. Not anymore.

With inventories so low and demand so high, the median price of detached single-family homes sold in Silicon Valley is expected to break the $600,000 barrier by the end of March, and sales could reach a record 2,000 a month. Most homes in the area sell at or above the list price, and the DOI (a theoretical number indicating how long the current inventory of homes would last at the current rate of sales if there were no new listings) is at 30 days and falling, according to real estate statistician Richard Calhoun, broker/owner of Creekside Realty in San Jose.

Linda Boyd, a real estate agent with John V. Pinto & Associates­Realty World in San Jose, says right now there's a "feeding frenzy" as pent-up buyer demand outpaces inventory. Consumer confidence apparently has won out over relatively high unemployment and limited job opportunities, but that could change in the coming months.

"The further we go into the spring and summer, the inventory will build up. Sellers should not wait," said Boyd.

Boyd said the inventory of low-end homes is particularly thin, and that's pushed up prices so much, for example, that 1,200-square-foot, two-bedroom, two-bath, 20-year-old condos in downtown San Jose—one of the area's least-expensive markets—cost more than $325,000.

"I could sell five tomorrow if I had them," said Boyd.

Calhoun suggests waiting. All indications are that prices have only just begun to rise, he says.

Agents are generally in agreement that procrastinating too long, especially to find that peak "sweet spot," won't pay off because there's no way to know when the market will peak until it starts slipping.

Sellers in a seller's market also often get greedy and attempt to push the market with too-high list prices.

"Sellers should price toward the high end of the price range for the product they have, but not above the range. A home priced above the range gets fewer showings, therefore less bidding, which is where prices get driven up," said Houde.

Other agents lean the other way.

"Those priced at or just below the market price will sell in a few days," said Boyd.

There is widespread agreement about curb appeal. Sprucing up, cleaning up, removing clutter, painting, landscaping and updating fixtures, windows, and doors and performing other cosmetic touches will put your home in the best light for a nominal cost that can reap a big payoff.

Making generic improvements that enhance your home's functionality, efficiency and aesthetics—all to give it a more contemporary feel—also means completing deferred maintenance and making sure all the components are in good working condition.

"Even with competitive bidding, the house that shows the best will get the highest price," said Houde.

Other tips for sellers venturing into the seller's market include:

* Use the multiple listing service for maximum exposure.

* Don't negotiate down the buyer's agent's commission to increase your take-home, or that agent will be reluctant to show your home.

* Instead of accepting backup offers, be prepared to return to market for a higher price. "In a backup situation, the buyer can continue to search for another property without obligation. If that buyer is still available when the first sale fails, you can still bring them back into the picture," said Houde.

* Manage multiple offers fairly; don't jump at the first over-list bid. Keep your options open.

* Look for mortgage-approved buyers. That's evidence they are ready to buy.

Real estate writer Broderick Perkins, executive editor of San Jose-based DeadlineNews.Com, writes regularly for
Los Gatos Weekly-Times.