Lake Forest Short Sale Report - February 2011
Detached Homes
All Sales
Short Sales
% Of Short Sales
November 2010
36
14
38.90%
December 2010
36
7
19.40%
January 2011
25
5
20.00%
Combined
97
26
26.80%
Active Listings
148
54
36.50%
36.5% Of Available Inventory Is Short Sale: Of the 148 detached homes currently for sale in Lake Forest California (including Foothill Ranch and Portola Hills) 54 are short sales (as of 2/10/11). I always recommend choosing a home based more upon how it meets your needs rather than price but let's face it ... price is almost always a consideration and purchasing a short sale can afford a patient buyer with a rewarding price point. Short sales sold at a discount of about 15% (versus standard sales) in Lake Forest over the last 3 months (November 2010 - January 2011). The average sale price of detached homes in Lake Forest that were standard sales was $545,523.00 from November to January while the average sale price of short sale detached homes was $472,500.00 (26 short sales). Given that you could purchase a short sale in Lake Forest for 15% less than a standard sale during the last three months why wouldn't you focus solely on short sale homes?
| Detached Homes | Short Sale | Standard Sale |
| Average Sale Price | $545,523 | $472,500 |
| (Nov. - Jan) |
Patience Of A Saint. Price isn't everything. The home you select should meet other basic needs and desires in conjunction with the ultimate sale price obtained. Short sales add some additional complications that all buyers should be aware of. In a standard transaction you make an offer and the seller makes the decision to accept, reject or counter-offer and the process continues until both you (the buyer) and the seller are in agreement. Proceed to escrow and then close. Total time elapsed 30 - 60 days give or take. Yes, I am simplifying as not every standard transaction proceeds so smoothly. The point is, though, that you (the buyer) and the seller are the decision makers. Short sales require the approval of the seller's lender or lenders. This often consumes a great deal of time and usually a good deal of going back and forth with the bank's demands and restrictions for the seller and their agent. These negotiations between bank and seller often impact the buyer as well. It is not uncommon for 30, 60 or even 90 days to elapse after your offer has been accepted by the seller only to be rejected or countered. The Dos and Don'ts of Buying A Short Sale are beyond the scope of this post but if you are looking to buy in Lake Forest it is beneficial to know the pros (likely a lower price) and the cons (may be a prolonged and complicated transaction) of buying a short sale. If you are patient and resilient with a flexible timeframe buying a short sale in Lake Forest could be an excellent decision.
FIND LAKE FOREST SHORT SALE HOMES
Visit my Lake Forest Real Estate resource site for in-depth real estate and housing information specific to Lake Forest; including homes currently for sale, market reports, market trends, school information, property tax & Mello-Roos info, HOA info, community links, short sale guidance, foreclosure listings & local news & events.
If you owe more on your home than it is worth and are considering a short sale I invite you to get as much information about short sales as possible at my Lake Forest Short Sale Help pages. The more you know... the better decisions you can make.
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