The news keeps getting worse. The continuing slump in the housing market along with the failing credit market is exacerbating the serious problems facing the US and global economies. Marin County has been known as a bastion of “old money” and “security” that ordinarily weathers economic storms better than most. Unfortunately, that is not so in these very troubled times. For instance, back in 1991 when there was a world-wide recession, we saw home prices fall. Yes, there were short sales and foreclosures in Marin County but they were a rarity. Most Marin homeowners who tried to sell their homes during 1991-1995 were, generally speaking, not in a position where they had to sell. In fact they did not sell unless they received the price they wanted. Granted, there were fewer sales, but the homes that did sell did so for healthy prices. That helped preserve Marin County home prices. The fact is that during those years Los Angeles area homes lost almost 50% of value, San Francisco lost about 16%and Marin lost 3%.

Today, however, all of the ‘funky financing’ of the past 6 years – no doc loans, NINJA (no income, no job or assets) loans, 100% financing, frantic refinancing – has created a situation where many of Marin homeowners are “underwater”  and facing short sale or foreclosure.

For home owners wanting or needing to sell it will feel as though you’re selling your home in a “fire sale”. What will seem like dramatically low pricing to the sellers is exactly what it takes to interest the few buyers out there. How will most sellers fare selling their home in this market? 

The bottom line is that buyers have some really good opportunities to buy properties at greatly reduced prices and sellers must understand that this market is not for the timid seller. Sellers must be realistic about declining values and how pricing must make sense in this market. My advice to those who need to sell is to get an up-to-the-minute comparative market analysis on their property by an experienced, reputable Realtor and listen to his/her advice. Testing the market with high prices, by not being ahead of the declining value curve and by not putting 100% into making the home as presentable as possible, are death knells to selling your home.