Successful Short Sales In Marin County
(The Fourth of Four Installments)

The Buyer’s Perspective
In Marin, from January through April 2010 the short sales of single family homes increased 94% over the same time in 2009.

That short sales are finally working out is good news for potential buyers because along with the increase in closings there is an increase in the speed with which the short sales are being approved.

Types of Distress Sales
Buyers interested in taking advantage of the market opportunities in these trying times need to differentiate between the short sale (bank approval needed), trustee sales (cash sales on the court house steps) and bank owned properties (called REO’s).

The short sale properties often take many, many months from offer acceptance to close of escrow. While less time is involved now than six or eight months ago, these sales do take patience.

Trustee sale, an all-cash no escrow, on-the-spot sale, results in a limited deed given on the spot.

REO properties, marketed through the multiple listing service, often close escrow very quickly and are often offered at surprisingly pleasingly attractive prices.

Drawbacks to short sale purchases
Short sale properties have been difficult purchases for a variety of reasons:

  • The time period from offer acceptance to close of escrow is often many months and can take a year or more. Many buyers get ‘cold feet’ and give up.
  • A buyer in contract can lose the purchase if another, better offer comes along.
  • The owner of the home is selling often without realizing enough money for first and last month’s rent on a new home.

Success
Until recently, the successful purchase of a short sales home was most often found in dealing with lenders who had portfolio loans (for example Wells and Wachovia) and where there was only one loan on the property. This may change with HAFA. Time will tell.

The Big Picture
Short sales create a downward price pressure on the market that spills over and creates other opportunities. While San Anselmo hasn’t had too many short sales, there is evidence of the downward pressure on homes in San Anselmo’s Seminary that illustrate this: 75 Kennsington was sold by Catherine Hogan in November ‘06 for $1,080,000 then sold again by George Desalvo in July ‘09 for $665,000. Other sales of note in the area include a condo sold by Jeannette Anne for $190,000 (oh how I wish I’d been the buyer!) and a home at 68 Ross Avenue that sold for $1,184,000 in August ‘05 and was sold by Barbara Major this month for $925,000.

Was this series helpful to you? Do you want or need more information?

If you think the time is right and you’re interested in buying property contact me at tverkozen@fhallen.com or call me at (415) 257-2039 and we can discuss the possibilities.

Successful Short Sales in Marin County
Part 1 – Overview
Part II – Short Sales from the Homeowner’s perspective
Part III – Short Sales from the Bank’s perspective
Part IV – Short Sales from the Buyer’s perspective

Posted by:  Tom Verkozen