If you’re looking to buy a Los Gatos home, you may want to consider purchasing a short sale listing or bank owned property as they are usually more affordable, as real estate prices go, than “regular sales”.

There are a few caveats to buying distressed properties in Los Gatos, though. First, be aware that there are hardly any of these foreclosure or pre-foreclosures homes for sale at any given time in the Town of Los Gatos. At last count, it was about 12% of the real estate inventory altogether (both REOs and short sales combined).

How low will the short sale home seller go? Or the bank if it’s an REO property?

Second, there is some confusion about pricing and discounts. Just as with normal sales, if a short sale house, condo or townhouse is offered at a low price (or is reduced to become attractive) they will sell fast and very likely close to list price. Sometimes you can get a home for much less than list price, but you need to check the comps. In some cases, the home may be priced below a reasonable market value already and it may get bid up, especially if there are multiple offers.

Whoever bids first gets the house, right?

Third, a quick reminder that these sales are not like normal ones in which the first person in contract gets the house. With distressed sales there aren’t a lot of guarantees that the buyer will be able to close on the deal even after acceptance by the seller. With a short sale, remember that the bank or lending institution must approve the sale. If the lender thinks the price is too low, the sale won’t go through unless they buyer goes up in price. Other offers may still come in after yours is accepted, and the bank can simply not approve yours and instead decide, with the seller, to work with the higher offer.

When banks own the property, they want to sell to the highest bidder. You may get into contract only to have the bank find a better offer – and kick you out of escrow! This doesn’t happen in a regular sale, of course. (See also this post:  What is a “Kick Out” Clause? )

All disclaimers now made, below please browse the list of available REO listings and short sale listings in Los Gatos, CA.

Browse Los Gatos Short Sale Listings & Bank Owned Properties for Sale

Los Gatos Short Sale and Bank Owned (REO) houses, condos and townhouses for sale and Los Gatos Short Sale houses, condominiums and townhomes

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Mary Pope-Handy
Realtor
ABR, CIPS, CRS, SRES
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at) PopeHandy.com
License# 01153805


Selling homes in
Silicon Valley:
Santa Clara County,
San Mateo County, and
Santa Cruz County.
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Special focus on:
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Saratoga, Campbell,
Almaden Valley,
Cambrian Park.
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Valley Of Hearts Delight
Santa Clara County Real Estate,
with an interest in history

Move2SiliconValley.com
Silicon Valley relocation info

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Mary’s Blog Awards
Top 25 real estate blogs of 2018 by RentPrep2018 RentPrep.com's list of top 25 real estate blogs to follow


Top 25 real estate blogs 2016
2016: Personal Income's list of top 25 real estate blogs.


Best Realtor blog award
2016: Coastal Group OC's list of best Realtor blogs


The 2009 Sellsius list of top 12 women real estate bloggers
2009: Sellsius list of top
12 women real estate bloggers


Mary Pope-Handy's Live in Los Gatos blog won the 2007 Project Blogger contest, sponsored by Inman News and Active Rain

2007: Mary Pope-Handy and Frances Flynn Thorsen win the Project Blogger Contest for Mary's Live in Los Gatos blog. The contest was sponsored by
Active Rain and Inman News.


Non blog award


Best real estate agent in Silicon Valley from the San Jose Mercury News poll of readers in 2011
"Best real estate agent
in Silicon Valley"

2011 readers' poll,
San Jose Mercury News

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