Should First Time Home Buyers In Marin Consider A Short Sale?
I’m talking to more and more buyers about short sales right now, and have two in escrow. And this question is coming up more and more.
A short sale, plain and simple, occurs when the lender agrees to take less than what they are owed. They are messy, long, and sometimes do not work out.
So why would a first time buyer bother with one?
First, because the number of buyers willing to undergo the process is smaller, that means there is less demand, and you can often get the property cheaper than an equivalent house.
Second, first time buyers are by definition, renting. And in this market, they can often extend their lease on a month to month basis. So they have the flexibility to put up with banks that rarely respond to a short sale offer in a timely fashion.
Third, short sales are becoming more common, and banks seem to be getting more responsive. We are actually in contact with real people on the ones we are involved in, and getting concrete dates for responses.
Fourth, short sales are going to continue to become more important. We are now seeing them in Corte Madera, Larkspur, Mill Valley, and Tiburon. Six months ago, that was unheard of, as they were restricted to San Rafael and Novato.
The process is difficult. The outcome lacks certainty. But the payoff can be a real bargain.
We’ll let you know how ours turn out. If they do close, they will be amazing bargains for our clients. And there are plenty more out there!
