Don’t Get Bushwhacked by Short Sales & Foreclosures

Foreclosures & short sales are going to continue to be part of the local real estate market dynamics for at least another year or two. How does a homeseller whose mortgage is not upside down compete with foreclosures and short sales?

Over the last several years we have seen many, many homesellers who are not underwater on their mortgages list their homes at a price that seemed fair and reasonable and even at or around market value get blindsided by the sudden appearance of a foreclosure property or short sale on their street or around the corner. When this happens, the homesellers often wind up in a reactive mode and while they work their way through the emotions of feeling bushwhacked, they run the risk of the foreclosure or short sale affecting the appraisal value of their home.

The very first thing a homeowner who is thinking of selling needs to do is to get an in-depth objective view and understanding of their local real estate market at the neighborhood level. This includes not only the hard data, but the current psychology of the market and any local economic developments that may affect the market dynamics in the near future.

Selling a home with equity in this market at top dollar requires being proactive and having a well thought out marketing plan that is aggressive, but realistic, so the home can be sold in a timely manner and not run the risk of having to compete on price with new foreclosures or short sales entering the market.

An attractive home (inside & out) in good repair is often the deciding factor when two homes for sale at the same price point are competing for the same buyer.

Here are a couple of real examples:

In San Ramon – a homeowner lists their home for sale at a price that is above market value by $10K – $20K. Six months and 1 price reduction go by until a home, four houses down on the same street, with the exact same floor plan comes on the market as a short sale at a price $60K below their asking price. The owners lower their price to match the short sale, but the short sale enters contract, closes escrow and is now used as a comp for all homes in the area.

In Danville – Two townhomes in Crow Canyon Country Club (same floor plans) are listed at the exact same price. One has been well maintained while the other has dry rot and other issues that need to be addressed. The well maintained townhome sells first.

Selling a home with equity in this market (for top dollar) with a steady stream of foreclosures and short sales necessitates anticipating the very real possibility that one of your neighbor’s homes may come on the market as a foreclosure or short sale in the middle of your sales effort.

San Ramon, Dublin and Danville Home Sellers – You can request a Specific Real Estate Pricing Trend Report for your home. Email Craig with your neighborhood and pricing info.

Showing properties 1 - 5 of 76. See more city of San Ramon real estate.
(all data current as of 5/17/2012)

1. $639,950 : 117 BALTUSROL PL, SAN RAMON
   
   4 beds, 3 full baths

   Home size: 2,384 sq ft

   Lot size: 10,800 sqft
2. $499,000 : 2402 AMARYLLIS CIR, SAN RAMON
   
   3 beds, 2 full, 1 part baths

   Home size: 1,433 sq ft
3. $785,000 : 504 FALLEN LEAF CIRCLE, SAN RAMON
   
   4 beds, 3 full baths

   Home size: 2,614 sq ft

   Lot size: 15.00 ac
4. $1,879,000 : 415 CRANLEIGH CT, SAN RAMON
   
   6 beds, 6 full, 1 part baths

   Home size: 5,632 sq ft

   Lot size: 18,295 sqft
5. $1,115,000 : 7837 KENNARD LN, SAN RAMON
   
   5 beds, 4 full, 1 part baths

   Home size: 4,202 sq ft

   Lot size: 9,578 sqft

Listing information deemed reliable but not guaranteed. Read full disclaimer.