Marin house hunting like choosing a mate in an uncertain world!

I toured more than 25 new listings yesterday and today, and overall, it seems many sellers are still living in the past, with prices set too high, while buyers are still waiting for prices to drop even more.  As we 'celebrate' St. Patrick's Day by awaiting the arrival of an uncertain "Plume" of radiactivity, courtesy of Japan's record earthquake and tsunami, the drama of house hunting in Marin continues, but there are a few bright spots.

The lower end of the real estate market continues to do well, as the "starter home" price category is chugging along with over 30% of all available homes in contract.  This category ranges from about $700k to $950k in the south county; and $400k to $800k in Novato and parts of San Rafael.

As far as individual listings go, there were a couple well-priced new properties in Greenbrae and San Anselmo and I am partial to our new listings in Corte Madera at http://www.11meadowridge.com/ and http://www.5madrono.com/.

Many buyers are somehwat motivated by fears of  the ticking clock -- that interest rates may soon head the same direction as gas prices.  But house hunting is a lot like choosing a mate, and so, unless there's some competition, buyers often don't see the need to be in any hurry to commit.  Who knows, there might be a prettier girl (or house) coming just around the corner ... 

We're working with several sellers to get their homes ready for market, and are encouraging them to move as quickly as feasible. Who knows how long this current pool of buyers will be around?  The Spring market isn't getting any younger...  But as long as inventory of good properties remains low, patience is a workable strategy for sellers already on market, since buyers may eventually realize that nothing better is likely to pop up. 

So staying the course and not giving up is all we can advise to both house and spouse hunters. Have faith that the right one will come along.  But keep your expectations in check.  Hold out for perfection and you may end up empty handed.  Be aware that the old 'biological clock' is ticking (both with interest rates, and just getting on with your life!).  But don't let anyone make you panic and act too quickly, unless that plume turns out to be something of note.
Happy house hunting.  Or selling.  Either way, may we all find the perfect house, and the spouse to go with it! And that is my Irish blessing for day. 

Pat Ravasio
Frank Howard Allen Realtors CA license #01394550

Beating Foreclosure with a Short Sale is a Smart Idea!

If you are a homeowner facing the possibility of foreclosure, taking the proactive step of conducting a short sale could be an excellent idea. In a short sale, the bank is convinced to sell a property at current market value, even though that value may be well below the amount you owe to the bank. The advantages to you, the seller, can be both significant and numerous.

Most importantly, you’ll be more able to keep your life on track financially. According to most published sources, if you have never fallen behind on your mortgage, you may be able to buy another home immediately. If you have fallen behind in payments, you may be able to qualify to buy again in two years with a Fannie-Mae backed mortgage. With a foreclosure, it usually takes seven years before you can qualify for another mortgage. Your credit score is not as affected either. After a short sale, FICO score drops are reported to be in the 50 to 130 point range. A foreclosure on the other hand can drop your credit score up to 160 points, and will remain on your credit report for seven years, which can make it difficult to even get a rental! Employment opportunities may also be affected. If your prospective employer runs a credit check, your application may be denied if there’s a foreclosure on your record.

In California, the bank is almost always required to forgive the shortfall. Deficiency judgments for a first trust deed are prohibited by law now in California, even if the property has been refinanced, so if the bank agrees to the sale, you are relieved of potentially massive debt. The bank is often motivated to accept the sale, once they become convinced that it won’t sell for more any time soon, and they will also save the costs and time of foreclosing and then having to sell the property themselves.

There’s also the advantage that you are in charge in a short sale. As your listing agent, we let the bank know that you are taking the initiative to be responsible. Because short sales take time to process, you may also end up with more time in your home to figure out your next move. You also won’t face the stigma and emotional toll of being forced out of your home.

Bob and I now have a strong record of effectively representing both sellers and buyers in short sales, and we have successfully closed eight of them in the past year. In one short sale scheduled to close in early March, the bank will forgive several hundred thousand dollars of debt. We have negotiated zero deficiency agreements for all our sellers, even when the banks have tried to sneak something past us, in the fine print, on closing documents. Banks can be tricky to deal with. They often cut our commissions, and make other demands, but they are also willing to negotiate as long as it all makes sense to them.

If you, or someone you know, is falling behind because of loss of employment or other circumstances, time may be of the essence. If things get too far along, the bank is likely to go ahead and foreclose, so don’t delay in taking action. And know that you are not alone. As we write, there are 41 homes in Mill Valley and 16 in Tiburon and Belvedere that are in some stage of the foreclosure process, everything from small condos to $3m plus homes.

The hardest part is making that first call soon enough to get started in time. Even if you are currently working with the bank hoping to get a loan modification, we can get started working on the short sale, but call it all off if you meet with success. Of course, and we hope this goes without saying, we promise total confidentiality
in all our dealings with clients. These times are hard enough on everyone, and we surely hope this stage of bizarre economic gyrations is coming to an end soon.

Call us if you have any questions or just want to know more. And pass this on if you have a friend or neighbor who might need our help.

Pat Ravasio Frank Howard Allen Realtors CA license #01394550

Great Day to See Open Houses! Here's a link to everything that's open

Here's a direct link to the Marin MLS Open House search page.  Let us know if you see something you like!

Pat Ravasio
415-845-1927
Frank Howard Allen Realtors
CA license #01394550

Marin Luxury Real Estate Market a Buyer's Playground

While most of the Marin County real estate market is finding some balance, the higher end remains a decided buyers market.  In the $3m and up category, there are currently 71 homes on market and only 6 of them are in contract, (or 8%), so if you've got $3 million or more to buy a home in Marin, you may be in luck.

Homes priced between $3m and $5m make up the bulk of this market, with 36 listings total, and about 10% of them in contract.  Most of the these homes are in Belevedere or Tiburon, which seems to have a somewhat higher turnover rate than Kentfield and Ross.  There are also a few in Mill Valley.

What's interesting to me is the number of posts we get regularly on Marin's Top Agent Network about "ready to go" buyers in the luxury price categories, often up to $8m to $10m.  At least a few times a week, I get a post about a luxury buyer anxious to find the right property, yet so much is on market, and so little is actually going into contract. This is most likely a sign that these notoriously selective high end buyers are simply not finding what they want for their money. Which is also a likely sign that sellers are not (yet?) being realistic about price.

In the $3m to $5m segment, price per square foot varies wildly, from $600 to $700 for homes on the Paradise side (of back side) of Tiburon and one in Bolinas, to up to $2400 per square foot for prime property with dead on views of the Golden Gate Bridge on Mt.Tiburon.  

We'll keep an eye on things for you, but  don't expect any big changes in the luxury market this year.  Empowered buyers will continue to hold out for a great deal, and if sellers can afford to wait, the are, often renting out these high end homes at prices that don't quite cover their costs, but do give them the comfort on not actually having to take that loss on a sale.

And speaking of the rental market, it is very strong.  These statistics are harder to come by, since most rentals post on Craigs list and other services that don't post on Bareis MLS, but there are very ordinary 4 bedroom homes in larkspur renting for over $6000/month, and the only Top Agent Network Post more frequent than the needs of high end buyers, is that of high end renters.  Tougher lender requirements and simple fear are keeping more and more people moving to Marin in the rental market.  So if you know you need to sell but want to hold on for another year (which should show some modest appreciation), you might want to rent for a year, and prepare for next year's market.

If you want to read more about luxury real estate, check out Frank Howard Allen's partner site at www.luxuryportfolio.com  Have a good weekend.

Pat Ravasio Frank Howard Allen Realtors CA license #01394550

Marin County Real Estate Market Springing Back?

While realtors are not yet dancing in the streets like Egyptians, some of us did last night at the Marin Valentine's Ball, a wonderful fundraiser for four very deserving charities in Marin at the Civic Center. It was an awesome event ...

But this is supposed to be about Marin real estate, where there is also good news:

The Spring Market is beginning with a nice little bang, especially at the lower end. There were many new listings last week in the lower price ranges which got multiple offers and are now in contract, some with back-up offers in place. The good ones, especially under $850k, are selling quickly.  The percentage of all single family homes under $1m in contract is now over 30% in southern Marin, making it a clear sellers' market.  Talking with many young couples from the city, often with a baby or two in tow at open houses, has made it apparent that these young families are tired of having their lives on hold while they wait for the economy to settle down. There's also a belief that interest rates will continue to inch upward.

In the higher price ranges, there were about a dozen decent new $2m plus homes that came on market this week, many of them in Mill Valley,with a couple in Tiburon and Kentfield, and a notable 4 bd/4bath in a prime Larkspur neighborhood. This week will tell us more about how well that end of the market is doing.  Up until now,with mostly recycled listings from last year to choose from, these buyers were holding back, keeping the percentage in contract in the low 20s, a buyer's market.

I will take a closer look at the emerging top end category of $4m to $10m homes next, and will post on that soon.  In the meantime, let us know if you have any questions about what's going on in Marin. This is clearly the most promising market since the Spring of '08, when we first started getting nervous about our 'too good to be true' housing market.  Now that we have learned that lesson, we advise moving forward with caution if you are a buyer.  Don't jump too fast or too high.  This early burst of activity could just be pent up early Spring demand that will taper off as inventory grows. To sellers, we say "get a move on" since no one knows how deep this buyer pool is.

An important disclaimer:  Never forget that our cystal ball is a little glitchy, as all honest ones are!  Our real estate informaion is deemed reliable, but not guaranteed.  And if there is going to be dancing in the streets, we'll be the first to let you know!

Pat Ravasio
Frank Howard Allen Realtors
#1 Agent in Larkspur & Corte Madera 2010

Must see this large home with huge potential in Larkpur's Hillview Neighborhood:

98 Cornell Avenue, Larkspur, CA  6 Bedrooms/4 Baths. Just reduced to $1,389,000

Listed by Bob and Pat Ravasio, Frank Howard Allen

Call us for a private showing!

CA License #01394550
Stats are from Bareis MLS, and are approximate, limited to towns in southern and central Marin County.

Some exciting new listings this week!

While we are still waiting for the majority of sellers to wake up from their two year hiberation and get going, there are some who were ready for the opening bell of the Spring market this week.  Many of the listings were recycled ones that didn't sell last Fall, but there were some exciting new offerings in all price ranges. Here's a link to some of the most interesting new listings of the week.
http://loginlax.rapmls.com/Reports/ReportViewer.aspx?hidMLS=BARI&Report_Format=HTML
From the $800k family home in Corte Madera to the $8,000,000 beauty atop Tiburon, if you see anything you like, drop me a line and I'll tell you more about it!

Sellers should get a move on ... Buyers should see everything, but take their time...

If you are thinking of buying or selling a home in Marin County, you already know you are embarking on a project that could have a major impact on your financial well being and your quality of life.  You probably also know that the choices you make -- everything from timing your sale or purchase, to choosing a realtor, to whether you paint and stage -- could have a dramatic affect on the outcome of your efforts.  What I am going to do with this blog is tell you what I know, in real time, that can help you meet with maximum success.

So here's what I know right now.  Buyers are back in big numbers.  Our open houses, even on tired listings, have been very well attended. Buyers are nervous about interest rates going up, tired of having their lives on hold, and ready to get on with their lives in a new home.  Percentage of homes in contract is over 30%, meaning that at the moment, it is actually a seller's market in most of Marin County.

That means sellers are waking up and getting ready to go.  We've been hearing from many of them, wondering if they should start painting, staging, prepping, and getting ready to go.  Sellers are feeling similar to buyers, in that they are tired of waiting for a better economic climate and want to get on with their plans to move. 

Obviously, this real estate market, like any market, is shaped by its supply and demand.  Buyers are ready now. Sellers are slowly waking up to Spring.  Our sense is that the early birds will catch the fattest worms in this market.  Most of the new listings that have popped up this week (the first week after Super Bowl, and traditionally the kick off of the Spring market) are recycled listings from last year.  Anything truly new stands out, and today, in Southern Marin, agents will be out of tour scouring the new listings for the well priced properties.  As we move along further into the Spring, and more listings come on, the competition will be more intense.

So, today's advice to sellers is: Get a move on!  The sooner you get on market, the more buyers you'll have considering your home.  To buyers:  Get out there, see everything, but know that the bulk of the new listings are still being prepped, so take your time, make sure you buy a place you really love, or you can turn into something lovable.