April 2017 in Marin: Spring Market is Here as Prices Spring Forth

Spring is here in Marin County and there’s greenery as far as the eye can see. Weeds in my yard, that is. I don’t recall having so many, so early. This will likely be a “double pull” year, where we have to have them yanked out now, and again in May/June. No matter, at least the hills are as green as they get, all over Northern California, not just here.

Meanwhile the housing market started its own spring forward, right along with the clocks. February rains pushed things back into March, but as soon as the clouds parted, so came out the For Sale signs, right along with the sun. New inventory was much-needed and the buyers responded in droves with multiple offers on nearly all the well-located, well-priced homes and condos. The successful buyers on each? Well, there’s a strategy there.

Most homes on the market in Marin will have an accompanying Disclosure Packet along with the full color property brochure. Those packets contain a lot of boiler plate CA forms, but also often have recent Sewer Lateral, Home and Pest Inspections. If that’s the case, smart buyers will sign off on these and go in with a very short (or no) Inspection Contingency Period. It’s risky, but as long as you can spend days going over the inspections and back to the house for several visuals, you could be the winning bidder. Providing you meet one other popular criteria, that is: No Loan Contingency or All Cash.

That’s right, over half of all offers now have no loan attached at all, with buyers cashing in high flying stocks or using past equity (or both) to avoid a mortgage. I’ve overheard some strategy sessions here and the prevailing thinking is that there likely is no safer place for their hard-earned money. I tend to agree with that, but I’ve never been much of a stock player or gambler, either, so I may not be the one to ask.

Or, my favorite plan, is to get a fully approved (or preapproved) loan and just go in without a loan contingency. Considering the last few underpriced listings have had north of ten offers on them, real buyers have to put real buying packets together. Even then, they still may not win, leaving them and many others still out there looking. But with the desirability to enjoy the quality of life here not stopping anytime soon, it can be risky to wait. For every ten buyers on any given property, only one wins, leaving nine still out there looking, cash in hand. And every closing sets the bar for the next somewhat similar home for sale. Just keep looking forward, not at today, and you’ll be fine, I promise.

For now, enjoy April, wherever you are. As always, let me know of any questions, thanks for reading and here’s to a great spring season for all of us.

TS

Filed under: Marin Real Estate Blog by Ted Strodder