Why Local Real Estate Terms Matter in San Jose

If you’re buying, selling, or investing in the San Jose real estate market, you’ve likely come across terms that feel confusing or overly technical. And while real estate language is often standardized, certain terms carry local nuances in San Jose and the broader Bay Area—especially when it comes to property taxes, zoning, and market practices.

At Block Change Real Estate, we’re all about clarity, transparency, and empowering clients. This guide breaks down essential real estate terms with a San Jose-specific twist, so you feel informed and confident throughout your journey.

🧾 Must-Know Real Estate Terms for San Jose Buyers & Sellers

1. Contingency

What it means: A condition that must be met for a real estate deal to go through—common contingencies include loan approval, home inspection, and appraisal.

San Jose Tip: In competitive markets like Evergreen and Silver Creek, buyers may waive contingencies to win offers—but doing so comes with risk. Talk to your agent before proceeding.

2. Appraisal Gap

What it means: The difference between the appraised value of a home and the buyer’s offer price.

San Jose Tip: In hot markets, buyers often agree to cover part or all of the gap in cash if the home appraises below the purchase price.

3. Supplemental Property Tax

What it means: A one-time property tax adjustment following a home purchase, based on the new assessed value.

San Jose Tip: Thanks to California’s Prop 13, property taxes are generally capped at 1% of assessed value—but your supplemental bill may come 3–9 months after closing, so budget accordingly.

4. Proposition 13 (Prop 13)

What it means: A California law that limits property tax increases to 2% annually unless a property is sold or significantly remodeled.

San Jose Tip: This law is a big reason many homeowners hold onto homes for decades, making inventory tight in neighborhoods like Evergreen Hills.

5. Mello-Roos

What it means: A special tax district used to fund infrastructure and schools in certain newer developments.

San Jose Tip: Some Evergreen Hills communities (especially newer homes) may include Mello-Roos taxes—which can add thousands per year to your bill. Always ask your agent for a full tax breakdown.

6. HOA (Homeowners Association)

What it means: A governing body that enforces community rules and manages shared spaces in condos, townhomes, or gated communities.

San Jose Tip: Many East San Jose and Evergreen neighborhoods, including parts of Silver Creek, have HOAs. Always check monthly dues and what they cover.

7. ADU (Accessory Dwelling Unit)

What it means: A secondary dwelling on a residential lot, often used as a rental, in-law unit, or guest house.

San Jose Tip: With new California laws, adding an ADU is easier than ever—and can significantly increase a home’s value or rental income. Some Evergreen homes with large lots are perfect ADU candidates.

8. Days on Market (DOM)

What it means: The number of days a property has been listed for sale.

San Jose Tip: A low DOM often signals a hot market, while a high DOM could offer buyers negotiation leverage. In Evergreen, homes often sell in under two weeks if priced right.

9. Escrow

What it means: A neutral third party holds the buyer’s deposit and coordinates closing paperwork between buyer and seller.

San Jose Tip: The escrow process in California typically lasts 21–30 days, and your agent will help manage the timeline, disclosures, and documentation.

10. 1031 Exchange

What it means: A tax-deferral strategy that allows investors to sell a property and reinvest proceeds into another property without paying capital gains—immediately.

San Jose Tip: Investors in San Jose often use 1031 exchanges to upgrade rental portfolios or shift into higher-performing neighborhoods like Berryessa or Blossom Valley.

📍 Evergreen-Specific Considerations

School Boundaries

In Evergreen Hills, school zoning directly affects property value. Always verify boundaries for Silver Oak Elementary, Chaboya Middle, or Evergreen Valley High before making offers.

Lot Size and Elevation

Due to hilly terrain, lot size and topography can vary widely. Ask your agent to review slope, usable land, and build-out potential, especially if you plan to add a pool or ADU.

🧠 Why Local Knowledge Matters

Even if you're familiar with real estate basics, local context is everything. What applies in Los Angeles or Sacramento may be totally different in San Jose.

At Block Change Real Estate, we combine years of market experience with neighborhood-specific insight to help you understand:

• What’s negotiable and what’s standard

• How to read between the lines of listings and disclosures

• What financial or zoning factors could affect your bottom line

Conclusion: Don’t Just Speak the Language—Understand the Market

San Jose’s real estate market has its own rhythm, rules, and real-life vocabulary. Whether you're buying in Evergreen Hills, investing in East Side, or selling a longtime family home, understanding key terms helps you make smart, confident decisions.

Let Block Change Real Estate be your guide—not just to great properties, but to the process itself. Still have questions about San Jose real estate terms? Reach out to Block Change Real Estate for a personalized walkthrough of your buying, selling, or investing journey—jargon-free.

Block Change Real Estate—local expertise, made clear.