Longtime staffers of Facebook stand to benefit significantly from the recent announcement that social media site Facebook is going public. Silicon Valley’s real estate market is already preparing for the surge in millionaire buyers as a result.
There will soon be a surge in ‘instant millionaires’ as longtime Facebook staffers prepare for the social media company’s stock market debut. So what will they all do with their newfound millions? Probably start with real estate and where better than in Facebook’s backyard: Silicon Valley.
Founded in Mark Zuckerberg’s Harvard dorm room eight years ago, Facebook has been taking over the media circuits over the past few days with the announcement that the company will be going public. When it happens, possibly next week, Facebook is expected to be valued at $100 billion. Facebook shares will likely begin trading on Wall Street later this year.
Silicon Valley real estate agents are preparing for the IPO to significantly boost sales in high-priced homes. Pierre Buljan, a Silicon Valley real estate agent who often works with young technology executives, said, “It’s going to have a great effect. I believe with 1,000 new millionaires, they’re going to need a place to live.” His clients, who he says typically pay cash for their homes, often seek modern, high-tech homes with easy access to good schools and airports.
Some experts are warning the new millionaires to avoid putting down big payments on home if they can’t later afford it when share prices drop. It’s smarter to sell slowly and avoid thinking that prices will soar indefinitely.