For Buyers

Steps in the Buying Process

Buying a home in Marin County will be a noteworthy accomplishment in your life from a number of different perspectives-emotional, financial, parental, social and environmental / health. Unfortunately, The process to buying a home is riddled with road-bumps.

If you are looking with a spouse, it is critical that you both are on the same general page as far as what you are looking for.

But, don't be afraid to look at homes from time to time that don't match exactly with your criteria.

Marin is very competitive-- Once you have found a home that fits, the chances are you are not the only people interested.

It is critical to see homes that match your criteria before they hit the market, or at least within their first week on the market.
Working with a knowledgeable, informed realtor will make all the difference in terms of timing and familiarity with the house.

The average home in Southern Marin sells once every 5 years so the chances are at least one person on your realtors team will have seen the house once before.

Please see the Buyer Process list.

Once you have a pre-qualified and ready to write an offer, the next hurdle is writing a strong offer without over paying.

A good realtor who understand your goals and situation will be instrumental in helping you with valuation.

When making a bid on a home, here are 3 things to consider:

One: Market Knowledge — It is imperative to understand the current real estate market in your prospective homes' neighborhood, and town.

Two: Valuation — Homes are difficult assets to value. However, there are certain metrics that can help.

Market Comparables, try for 10 at least: 5 that are currently on the market, and 5 that have sold within 6-8 months. Its best to pick recent homes sales in close proximity to your prospect home with similar attributes.

In many parts of Marin County, we don't live in "cookie cutter" neighborhoods; we live on hills, with different: slopes, views, exposure to sun light, privacy, access etc;
The deeper you get into this evaluation, the more crazy it becomes, as we enter the difficult realm of trying to value the difference in, say-- the slope of a lawn, or one floor plan to another, or discounting one home due to its tile, instead of marble, floors etc. Tip: Stay General.

Price Per Square foot: We can take our 5 recent market sales, and our 5 active properties and back into an average price per square foot for both.

Take the selling price of each home, divide it by the published square footage of the property as shown in the tax records

Compare these "Market Comps" to your prospect home:

Work with a neutral third party (a real estate agent) that knows the other properties, and who has seen your home. There will be notable differences that will help price your home such as:

Well, 'Market Comp One' had an illegal 1,000 square foot basement that the former owners retrofitted without county permission so the house is actually 1,000 sq feet larger than advertised; so the price per square foot is actually X instead of Y.
That one had a great floor plan, with amazing views of the city and great sun all day long, but no lawn
'Market Comp Four' sat in the shade all day, no views, but was new construction and kids could walk to school...

Your home compares favorably to the 'comps' for these reasons, and unfavorable to the 'comps' for those reasons.

The X factor: How much of a premium over the market comparables would YOU pay to live there

We often make our goals and dreams come true living in our homes-so when you find a home that you've "fallen in love with", only you can accurately value the home. Price per square foot and the market comparables should guide you as to a price range, but only you (the highest bidder) sets the "correct" selling price.

Three: Don't over-leverage and bank on appreciating home prices to bail you out

In Marin County California, the average home price in 1970 cost approximately $38,000.
In 2007, the average home price was just over $1,200,000 for an average yearly compounded price appreciation of just under 10%.
At the same rate of appreciation, in 20 years the average home in Marin would cost over $8,000.000.
Similarly, at the same rate of appreciation, a house that sells for $2,500,000 today would sell for over $16,000,000 in 2027.
We may be entering a era in which prices in desirable locations (such as Southern Marin) will appreciate at a slower rate for a period of time.