Los Altos Real Estate Blog

As of now, there is only one short sale in Los Altos.  This is no surprise since the market has been very strong for the past year and prices on homes likely to be short sales, at the low end of the market, have been selling over their asking prices.  At this point, the one short sale in Los Altos is located at 1285 Richardson Ave at the corner of Grant Road and Richardson Avenue in South Los Altos.  This location offers Cupertino Schools (Monteclaire Elementary) and not Los Altos schools.  This Los Altos short sale has been on the market since October 2008.

First, why is this Los Altos short sale still on the market?  That's easy, it's on a corner lot on Grant Road - arguably one of the busiest streets in Los Altos.  As such, there is a noise factor that makes the location an issue.  Being on a busy street results in a price penalty for most listings.  If you look at recent home sales on San Antonio Road, Spring Road, Grant Road, and other busy roads the price per square foot is always lower than nearby streets.  Taking that into account, the home current $1.8 million price is a challenge for many buyers.

In all fairness, the price must be acceptable to someone because it has been in contract more than once since it came on the market.  It's rare for a house in Los Altos to go into contract and fall out but it does happen.  Most Los Altos homes for sale in this price range will go into contract quickly and stay there.  If a home does fall out of contract it is frequently back in contract because demand is so strong.  In my opinion, the pricing on this home is a bit higher than what I've seen with Los Altos short sales or foreclosures that have location challenges.

At one point, the listing price was $1,499,000 and the price was raised.  It can be assumed that the current asking price is the minimum that the bank(s) will accept.  This often creates a problem where the bank has unrealistic expectations of the value of a property versus the market.  On the other hand, I do feel that given the quality of the home, the general neighborhood, and buyer demand for Los Altos homes for sale, this home will be back in contract soon.  If you're looking for a good value, I recommend taking a look at this home.  It compares very favorably to a home at the corner of Peterson Court and Grant Road that is also a remodel but not a short sale.