Sleepless Nights – Tales from the Marin and Sonoma Short Sale Marketplace

Posted on October 4, 2011 by verkozen

Four Essential Facts About Short Sales

  • Procrastination is common in stressful situtations – take it easy on yourself
  • A short sale is designed to help you find stress relief (mental, physical and financial) and get on with your life … call or email now for the Three Proven Steps to a graceful transition
  • Short sales help the bank minimize their losses
  • In the last year the average time on the market for the 1391 Marin and Sonoma short sales (that succeeded) was … unnecessarily … over six months. 

Short sale def. The sale of a home where the debts exceed the net sales proceeds. 

Short Short Sales

11 days into a two-loan, Santa Rosa short sale, Wells Fargo called the homeowner to say, ‘The debt is being forgiven.’  The sale closed shortly thereafter. The owner, Michele and I high-fived because in Sonoma County last year the average short sale took 198 nights.

 

Long Short Sales

A San Geronimo Valley home I’m showing tomorrow has been on the market 375 nights.  Imagine emotional toll and stress the 375 sleepless (?) nights of tossing and turning have had on this family.  Add to that, the lender is foreclosing and one of these days the owners will come home to a bold Notice of Sale posted on their door. Not fun.

Why do some short sales sail through with nary a hitch?

In the very quick Santa Rosa sale noted above, the seller (who has the most to gain), the buyer, banks, real estate agents, escrow officers and inspectors were a team.  This quick sale was documented in 97 emails.  The key to success is …  Communications, communications, communications.

Tom Verkozen is a Certified Distressed Property Expert

A New Wrinkle

Since the passage of SB 458 some lenders will cooperate with the short sale and others will foreclose and go for deficiency judgments …

To find out more about short sales, which are constantly changing, go to:

Short Sales Q & A 

Pricing Your Home 

Debt Forgiveness — Taxes 

Is Your Home A Prudent Investment?

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National Mortgage Settlement and Marin Real Estate

Posted on February 13, 2012 by verkozen

For real estate owners in Marin and Sonoma, the National Mortgage Settlement means … very little …

 

With an average loan of (this is a wild guess) $350,000, a $2000 principal reduction won’t help much. And the timing is suspect as well.

 

A San Rafael homeowner and reader who has been ill and out of work for much of the past year emailed that he’s back on his feet. His home is under water and he was wondering about the Settlement. The answer comes in four parts.

 

Part I

 

You have the wrong lender. There are only five banks participating and Union Bank is not one of them. I called the bank and they said they simply suggested that he sell the home in a short sale.

 

Let’s Do The Math …

Part II

 

The good news: The banks had hoped to fashion this settlement as a ‘now you can’t sue us’ and failed.

 

Part III

Before you get excited by this ‘historic settlement’  you need to ask why you should care …

 

  1. If the meltdown took you down, he damage to your financial and emotional life has been done.
  2. Even though there are Billions of Dollars involved, an evaluation of the National Mortgage Settlement in the February 12, 2012 NY Times determined that the average settlement would be around $2000.

 

Part IV

 

Consider this: the complexity of the mortgage market and the Settlement agreement is such that even if you are eligible for relief by living in the Golden state, the relief you may be eligible for will come sometime in the next three years.

 

The settlement provides minor assistance for:

  • For the millions and millions of homeowners needing modification of first and second liens through principal reductions. The servicers have agreed to write off up to $17 billion in principal reduction and provide other forms of loan modification.
  • Again…… Do the math … using round numbers: if four million people need principal reductions and there was $16 billion available, that would leave $4,000 each … before the costs of administration. Helpful? Not.
  • It is intended that the five big banks show other lenders that principal reduction is an effective tool in combating foreclosure, that it will not lead to widespread defaults by borrowers who can afford to pay, and that it is good business practice.
  • Borrowers who are underwater and with sufficient income will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.

 

  • 750,000 of the homeowners who lost their homes, with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process, will be get a share of the $1.5 billion that will be distributed nationwide … the math?  $2000.

 

The National Mortgage Settlement is close to meaningless in the Marin and Sonoma real estate arena.

 

 

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Marin Real Estate Foreclosures, Short Sales and Market Activity

Posted on February 9, 2012 by verkozen

Marin Real Estate is still strong on short sales and foreclosures but buyers are buying because there are bargains to be purchased both within and beyond the distressed properties.

I’m currently showing 5 Victor Court, a Wells Fargo owned four bedroom home in Novato.

A bit of history: This home was sold by my friend and office mate David Shapiro in 2002 for $464,000. It was recently listed by an out of area agent as a tenant occupied short sale for $419,000 … but did not sell. There were two notices of Trustee Sale posted, price of $623,670 … Wells ‘got’ the property at $340,557 … and it is now listed at $329,900. As with most of the Wells foreclosures, owners get the first shot at the property, then investors.

For more excitement, 1043 Poplar in Novato, a bank owned property listed by Nick Rasic, received five offers. Bet it sold for over the asking price of $200,000. We’ll find out. 30 day escrow.

And for even more excitement … two Mill Valley sales of note:

Mark Machado listed 78 Locust, Mill Valley for $1.2M. The owners smiled as the six offers came in. The best offer, closing today, was a 10 day escrow priced at slightly over $1.4M.  Good show, Mark!

Another joyous job in Mill Valley was the sale of the bank owned 408 Tennessee Glen Way. This six bedroom beauty was listed at $1,499,000 and sold to a cash buyer in no time for $1,595,000.

For added excitement … two Belvedere sales of note (see earlier article on Belvedere):

49 Bellevue, Belvedere, a glass house aka Sea Bunk, sold at $1434 per square foot. Last sold in 2010 for $1,750,000 (cash), this beauty came on the market for $1,925,000, had a zillion showings and sold, closing escrow for $1,795,000 in a few weeks.

Lest you think all Belvedere sales are quick and easy with high prices per square foot, the 1900s stunner at 207 Beach, Belvedere (previously written about as a best buy in Belvedere) started its life as a listing priced at $3,150,000 and ended up listed as a short sale for $2.495M. This wonderful home was sold by Jason Lewis in my office for $2.3M … after 422 nights on the market.

Did you know that three of the four Belvedere homes on the market that are in escrow are Frank Howard Allen listings? Not bad, eh?

Marin Real Estate is alive with short sales, foreclosures and great buys. If you’re thinking of selling, let me say, in as non-salesmanish way as possible, now is a great time for sellers … low inventory, pent up demand, great interest rates.

 

Posted in Bargains and Best Buys, Belvedere short sales, Marin, Marin County Real Estate Update, Marin foreclosure, Mill Valley foreclosure | Leave a comment

Belvedere Real Estate Update

Posted on February 8, 2012 by verkozen

 

 

Belvedere real estate is special. I love the time I spend visiting friends and clients in Belvedere, a small town (less than 1000 households) with wonderful, expansive homes on the edge of the bay … Belvedere is especially beautiful at night when the San Francisco view shimmers and twinkles …

Short sales and bank owned sales in Belvedere are minimal … in 2009 there weren’t any and in 2010 and 2011 there was only one such sale.  Another interesting feature of Belvedere sales is that homes tend to sit on the market for quite some time …. the average time on the market for the active listings in Belvedere is nearly a full year (341 days as of this writing).

After an initial bubble burst decline, sales and prices have stabilized in Belvedere Real Estate.  Mostly.  In 2010 the number of sales increased 50%. The next year the average price declined 20%.   Here’s some general data on the sales prices. More information available upon request).

 

year                      2007           2008           2009           2010           2011

 

average

sales price            4.15M         4.13M         3.03M         3.16M         2.58M

 

price per

square foot           1,140          1,059          918             971             911

 

units sold             26               23               22               32               33

As a top real estate agent in Marin County I stay on top of the market in Belvedere because while there were only 33 homes sold there last year my clients on the island appreciate my knowledge and smile when told that in that tight year homes in Belvedere sold with an average sales price of slightly just under $3M (and at just a smidgen over $900 per square foot) ….

Belvedere, home of the San Francisco Yacht Club … a town on the Tiburon peninsula with its own private lagoon, lots of Victorian homes … great weather, fantastic views and many interesting folk.  

Ahh, Belvedere …. affluent strides to mind … Belvedere began as a quaint fishing village … developed into some real prime real estate … with some of the most astonishingly magnificent water and San Francisco views in the entire bay area … a town with some grand Victorian homes … now a town with 2125 people … 956 households … median age nearly twenty years above the California median of 33.3 years … prides itself in being strictly for living … well …. also prides itself in having no stores and no restaurants …. boasts the highest per capita income for communities over 1000 people … and a median family income of $185,590 (2000 census) … and yet many residents walk to the ferry to glide into San Francisco’s financial district.

Belvedere real estate is alive and well.

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Good news for San Anselmo Real Estate

Posted on January 31, 2012 by verkozen

There’s good news in Marin Real Estate … and San Anselmo Real Estate is a great example. If you’re thinking of selling, the news is doubly great:

  1. The prices for San Anselmo sellers who are selling their own homes without any bank influence (ie not short sales) are considerably higher than the prices for the foreclosures and short sales. Homeowners willing to brave the market are getting a premium of nearly 50% per square foot over bank owned sales … statistics follow.
  2. Jenny Craig would love San Anselmo real estate … the inventory is very very slim … in San Anselmo there are twenty-eight homes on the market.

The Best Good News? If you have a property to sell in San Anselmo (or elsewhere in Marin or Sonoma County) your home price won’t be totally dragged down by the foreclosures. The bank sales in San Anselmo over the past year averaged under $300 per square foot while the homes sold by owners averaged over $450 per square foot.

Here’s the status of San Anselmo Real Estate: Currently four of the fifteen properties not in escrow in San Anselmo are distressed properties.

Distressed:

Two of the four are bank owned (the fixer home at 2 Spruce, an ouch! of a fixer and the spacious condo at 76 Ross Avenue).

The other two of the four distressed properties are short sales. Example: 212 San Francisco Blvd is a two bedroom home that sold for $930,000 in ’05 and is now, short, on the market for $585,000.

Not Distressed:

Of the ‘non-distressed’ properties available, my favorites are 114 Alder, which you may have read about here or on the Larkspur-Corte Madera Patch. A real beauty, on the market for just shy of a week. Yummy! and 101 Ross Avenue, a beautiful Victorian, owned by SF Theological Seminary, on the market for quite a while, this is a difficult, complex property because the sale at $1,825,000 includes a duplex and a day care center. Oh well, great house, interesting possibilities.

If you have San Anselmo Real Estate to sell, call now … the time is ripe!

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Fairfax Real Estate – Good News in Marin County, CA

Posted on January 30, 2012 by verkozen

There’s good news in Marin Real Estate and Fairfax Real Estate is a great example.  If you’re thinking of selling the news is triply good: 

  1. The prices for Fairfax sellers who are selling their own homes without any bank influence (ie not short sales) are considerably higher than the prices for the foreclosures and short sales. These homeowners are getting a premium of nearly 30% per square foot.
  2. Jenny Craig would love Fairfax real estate … the inventory is very very slim …  in Fairfax there are nine homes and no condos on the market.
  3. There are no condos available in Fairfax.  Agents have been asking if I have anything up my sleeve, but no, there simply are no condos availab.e

The Best Good News? If you have a property to sell in Fairfax (or elsewhere in Marin or Sonoma County) your home price won’t be totally dragged down by the foreclosures.

Here’s the status of Fairfax Real Esatate: Currently five of the nine properties available in Fairfax are distressed properties.

Distressed:

Two of the nine are bank owned (the fixer home at 48 Geary, offered at $285,000 and the 2000 square foot, five bedroom home at 101 San Gabriel Drive with an asking price of $619,900).

Three of the nine are short sales (365 Scenic, a 1920s, two bedroom bungalow with a fireplace listed by Kate Hogan, now reduced from $574,000 to $349,000; 17 Ridge Road, an adorable two bedroom cottage listed by Steve Letterman, an out of area agent at $499,000; and my favorite, 16 Shadow Creek Court, a marvelous five bedroom craftsman home on over an acre with southern exposure listed by Ryan Murphy, reduced in price from $1,885,000 to $1,675,000). This home as been on the market just shy of five months.

Not Distressed:

Of the four ‘non-distressed’ properties available, my favorites are 300 Bolinas Road (my first Marin home was just up the road from this, the 1910 vintage Henry Fairfax home situated on a knoll top with approximately ¾ acres). This home is a beauty, on the market for nearly five months, and has been reduced … and 7 Crest Road, a beautiful two bedroom home that has charm, sun and presence. Now priced at $649,000, this home as been on the market for less than a month.

If you have Fairfax Real Estate to sell, call now … the time is ripe!

 

 

 

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Opportunities in Marin Real Estate

Posted on January 27, 2012 by verkozen

114 Alder Avenue, San Anselmo

Many buyers and sellers of Marin Real Estate are playing ostrich … burrying their heads in the sand because prices have dropped. When prices drop on stocks, gold, chocolate and yachts the selling agents (stock brokers, etc.) pull up their knickers and sell, sell, sell. Yet right now there is a collective moan in the real estate industry: the number of homes on the market in Marin is exceptionally low. 

The broker concern is semi-correct: On the one hand, compared to the same week in last January there are 25% fewer properties for sale right now; on the other hand, there are gems to be found in the few homes.  On Thursday, among the 83 homes on the broker’s tour of central Marin, there were three outstanding gems, three gems listed by Jen Pennington, Melann Mushet and Linda Tull.

First, the listing at 58 Bridgewater. This is a beautifully maintained, well appointed four bedroom home in San Rafael’s Marin Lagoon. It is being offered at the solid price of $637,000. My buyers knew about this one last Friday when it was on our Marin Real Tours (a select group of Realtors have hired a bus to tour with monthly for the past sixteen years) previews of select homes. Great value, motivated sellers and Jen is one of my favorite agents.

Second of the three best is the very private view home at 325 Vista Grande, Greenbrae. Oh la la, this is a marvelous home with BIG views, wonderful grounds, hardwood floors and vaulted ceilings.  Offered at what I consider a bargain price … $1,299,000 … the sun rises and sets on this property.

The third gem is a six bedroom home down the street from where I lived some years back, San Anselmo’s Yolanda Park. The home at 114 Alder Avenue radiates art, joy, fun and elegance.  Like Dancing Coyote Beach, another of my favorite properties (one I owned in Inverness), this property has been used extensively for Pottery Barn photo shoots. My favorite room: the large outdoor covered porch (last year, when I sold the home next door, I fell in love with the entertainment quality of this porch). My favorite feature: the skylight at the top of the stairs which is framed to an elliptical shape.

Covered patio

There you have it …. inventory is low and opportunities abound for people who go forth and brave the slim pickings.  Call if you want to go shopping because there are opportunities to be found in Marin Real Estate.

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Sausalito Real Estate – Paint & Pride garners the big bucks

Posted on January 25, 2012 by verkozen

Sausalito real estate buyers are willing to pay a premium for the well-loved, clean properties. Here’s the thinking …

Background: It’s January and we expect a low number of sales … and as in most towns in Marin, Sausalito real estate is running with low inventory: There are only 29 single family homes on the market and of these, five are in escrow.

 

Remarkable Sausalito facts:

  • Homes in Escrow … The two distressed homes are offered at $324 per square foot while the three non-distressed homes are priced at $561 per square foot.

To further the case that market paint, pride and preparation pays …

  • Condos in Escrow …. The two distressed condos are priced at $257 per square foot while the five condos that are not distressed are listed at $432 per square foot.

 

Note:  The distressed condos have been on the market for over eight months (compare that to two of my recent painless condos short sales that closed escrow in 58 and 59 days respectively).

Bank owned properties ….right now there are only two bank owned properties available in Sausalito. Both are offered at steep discounts:

  • 62 Buckelew has a view, three bedrooms and two baths. Patti Cohn sold this one in 2005 for $730,000. An agent who won’t be named tried to sell it as a short sale … on the market for a year the price fell from $599,000 to $449,000 but it did not sell and the bank took it over based on a Notice of Trustee Sale that was recorded in August.  This condo is on the market for $359,000.
  • 105 Cloudview is a four bedroom home of over 3600 square feet that was on the market in 2009 for $3M. Today it is bank owned and listed at $999,999 … buffed up and with a 6% commission to motivate agents. Hey, I’m motivated … want to go, see? Call me!

 

The good news for sellers is …

  1. There aren’t a lot of distressed properties on the market.
  2. Buyers are paying a premium for non-distressed properties.
  3. Inventory is low and nearly one in four properties is in market.

The good news for buyers is …

  1. Rates are low and will stay that way for some time.
  2. Inventory is beginning to show up.
  3. Compared to a few years ago Sausalito real estate prices make it a bargain, especially with the America Cup en route.

Now is the time to jump on the market and buy (or sell) Sausalito real estate.

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Marin Real Estate — Price Stabilization?

Posted on January 18, 2012 by verkozen
 
kudos

The crux of this Marin real estate update is that the lack of inventory has created price stabilization and would have us believe this is a seller’s market. That isn’t fully the case but then only Rocky Vannucci and Mac Pourtabib think statistics are god’s gift from the heavens … or so you’d think as they bandy them about, nonsensibly trying to make sense.

Historically a sellers’ market occurred when more than 40% of the inventory is in escrow. In December 32% of Marin homes were in escrow.  Hey, John Madden would think that was good!

In escrow rates (thank you Rocky) for few towns: Greenbrae 57% , Larkspur and San Anselmo 44%, San Rafael 41%  and in Novato 40%. West Marin reflects a different picture, primarily because of the lack of inventory so we won’t go there.

Two observations about the lack of inventory … a year ago there were 986 homes available. Today there are 759. You do the math … the result of the lack is that prices have stabilized. That is good news.

Here are some of examples:

2431 Fifth Avenue in San Rafael came on the market in December with Mary and Linda. There were seven offers, five at asking and two above. The property closed at $715,000.

In Corte Madera I was involved with two homes on Lakeside. 137 Lakeside, listed by Peter Pickrel at $1,095,000 had three offers and sold for $1,160,000 (this was, according to Mike & Karen, one wonderful home); 97 Lakeside, with water views, listed by Suzanne Shelhart for $1,299,000, sold for $1,299,000.

In Larkspur there were 33 sales in the last six months, half of them (ok, 16 of 33) were over $1M. Average list price was $1,531,000, average sales price was $1,542,000. Price stabilization is one element, another is the speed of the market … average days on the market was 44. Wow!

On Thursday Michele and I closed one short sale, got lender approval on a second (three loans) and listed a gentle upslope view lot at the end of Alta Way in Mill Valley. This lot

View east

is approximately 70 X 100, abutts open space at the end of Alta (newest listing there is $1,350,000) … ask for information (plans, EIR, Herzog geotech report, etc.) … this is a real beauty. Want to see? Call and let’s go!

The crux of the Marin real estate update is the lack of inventory … this lack has created price stabilization. Will it produce price creep? Stay tuned!

Go 49ers!

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San Rafael short sale and foreclosure condos

Posted on January 5, 2012 by verkozen

In the past year there were 82 San Rafael short sale and foreclosure condos that sold. This is quite interesting in that there were a total of 168 San Rafael condos sold … with the distressed properties representing just shy of half of all the sales.

Of the 82 distressed condos, 35 were short sales. These sold at an average cost per square foot of $220 after 204 nights on the market.

The 47 foreclosures sold at an average price per square foot of $192 and averaged 83 days on the market.  Based on the price per square foot, the foreclosures sold at 13% less than the short sales.

The other half of the San Rafael condo sales, those that weren’t distressed, averaged 135 days on the market and $280 per square foot. You do the arithmetic.

Interesting, eh? Let’s talk!

What’s available in foreclosed condos in San Rafael consists of only eight properties.

Six of these available condos are in the canal area:

There are three condos available at 50 Sonoma, units 10, 12 and 20. The asking prices range from $89,275 to $109,900. The other condos are 155 Canal and 3724 Kerner, both at $109,000 and change, and 311 Bellam, a three bedroom at $199,900.

The seventh property is 301 North, an upstairs two bedroom two bath condo with views offered at $299,900. And the eight property is a beautiful seniors unit at Smith Ranch offered at $422,900.

Here’s a highlight on one of the short sales … this condo has been in and out of escrow for 10 months … Located at 1115 B Street, on the top floor of a relatively new building (built in 1994), smack dab in the heart of San Rafael (at Mission and B Streets) this beauty is in a building where the highest price was around twice the asking ($250,675).

San Rafael short sale and foreclosure condos are in thin supply, yet represent approximately 30% (fifteen) of the 53 active condos in San Rafael. If you want to go shopping, call or email. Happy New Year!

For some real information on short sales, press here.

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The $299,000 Woodacre short sale that hasn’t sold.

Posted on January 3, 2012 by verkozen

It is difficult to imagine what the Woodacre short sale owner is going through with a home that has been on the market over 1100 nights.  Yikes. Over three years of suffering in west Marin.

Dave, a  buyer I’m working with, called, inquiring about 72 Madrone, Woodacre.  

I called for information.

“Long story or short cut?” asked the agent.

“Short.”

“Fourteen escrows, 1138 days on the market, needs septic work of $60,000 to $70,000. Four loans.”

“Enough. Sounds like a lifetime achievement award. That’ll do, thanks.”

Pretty amazing: Here’s a property that sold for $31,000 in 1973 … sold again in ’05 for $700,000 … and when it came on the market at $649,000 a few years ago it didn’t sell. The price got reduced, and reduced and reduced … now it’s $299,000. How much fun is that?

Then there are the 14 escrows. Definitely no fun. Lots of work, no rewarded buyer.

More? There’s been quite a bit of legal action on this property as well … you ask, have the lawyers gotten rich? (I’d bet not, but maybe). There have been filings of quit claims, there have been multiple notice of defaults, plus multiple notices of trustee sales and even a lis pendens (and a release of same).

This property appears to have a bit of stuck karma, doesn’t it?

Imagine my relief when Dave said, “I think we should let this one go.”

If you want to find a great buy, call and let’s go shopping.

If you want to sell an underwater home, call and let’s sit a spell and proceed if the shoe fits.

But please remember: Not every Woodacre short sale is worth chasing, no matter how low the price or how great the potential.

Happy New Year!

 For some real information on short sales, press here.

 

 

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