Los Altos Real Estate Blog

There are a lot of buyers out in the market who are still looking for that "dare to be great" deal.  For the most part, those days are long gone.  While a few do pop up from time to time, most markets have turned up sharply and multiple offeres are becoming the new normal.

So, how do you get a good deal on a short sale in San Jose?  For starters, you have to know what a good deal is.  These days, getting anything below the recent sales prices is a great deal.  Once you find something like that, you want a home that is HAFA approved which means the short sale process will take a few weeks, not months as with other short sales.  When looking at listings in the MLS, look for anything HAFA approved and you're on the right track.

An excellent example of a HAFA-approved short sale is the property at 2691 Barcells Ave in Santa Clara.  This is a house that is priced below recent comps and is HAFA-approved and lender approved.  This means that the price doesn't need any futher negotiation with the bank or investor.  As such, it can close in 4-6 weeks, just like a normal sale.

The home I'm talking about is a 3 bedroom, 1.5 bath updated home with 1,145 s.f. on a 5400 s.f. lot that has extra parking space in an adjacent easement.  When I say fully updated, I mean it has it all - gourmet kitchen with stainless-steel appliances, dual-pane windows, copper plumbing, and an open floor plan.  The owner really took the time to make this home a very nice place to live.  Priced at $599,000 it is well below the nearby comps.

Compare that home to others in the area and you can see what a deal it really is.  The listing at 2701 Barcells had 4 offers and it was priced at $635,000.  That home has 1,332 s.f. which is slightly larger than the other Barcells listing up it's still a good comparable.  The home at 728 Rogers Court is a bit larger home with an original condition kitchen on a smaller lot but priced higher at $624,000.  By making these comparisons, you can see where you're getting a really good deal on a short sale.

Remember, the key to finding a good short sale bargain is to identify those homes that are HAFA-approved and priced at or below the comparable sales prices in the neighborhood.  Doing so will get you a very nice home at a great price in the same time as a regular sale.