Thank you folks. This is very helpful. I found that the couple who own the home dont seem to agree on the price, hence it is not going forward.

James gave you some good data let me just add my 2 cents worth, the home is right on the end of the Los Gatos zip , but as James pointed out it is in Campbell Union District. The schools according to the listing agent are Elem: Alta Vista, Middle: Union Middle, High: Leigh High. This is a nice area and the home has been remodeled. I have checked the history and it has been on the market for 331 days they originally listed it at 899k back in 9/30/08 and have had 15 price reductions since. Now here is the kicker the last 3 price reductions since 4/27/09 have only been for approx. 8k which tells me the listing agent is having a tough time getting the sellers to go lower ( which means they may be reluctant to accept a really low ball bid ). Now there is an active listing on Copeland Ln. about the same size it has been on the market for 140 days and is going for 699k but it needs work and at that price ( it has been at this price for at least a month) has not sold.
The comparables I have are between 765-788k with one that is on a busy street that sold for 666k. So the seller believes he has priced it fairly, its to bad that sellers do NOT set the Market BUYERS do. Since no one has bought this home it is over priced. So as to the value I would go in a bit lower than James suggest between 700k and 725k they probably won't take that offer but it is a VERY good starting point.
Please make sure you have a GOOD buyers agent, there are some good ones right here on trulia.
If you needs assistance please feel free to contact me.
I hope this helps,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256

This is a great area! It is basically the Los Gatos area on the border of Cambrian and commands a higher price because of that but belongs to the San Jose schools (Campbell Union). It has been on the market for quite a while and was originally listed Sept. of 2008 for $899k. The best comp in the area sold on 1806 MICHON DR. for $719k back in May. Considering Willow is a slightly larger (~200sq ft) it may have a greater value of around $730k - $750k. That is why it is sitting on the market, priced too high originally and priced behind the market as the list price decreases. Good thing is that it doesn't seem to be a short sale so maybe you would be able to work out a good deal in a reasonable time.

Why don't you have an agent helping you with this?

Regards,

James Peterson
Broker
408-836-9653