Fixers – Sonoma County Blog

Vanishing REO and Short Sales

If you are looking for an REO or short sale bargain in Sonoma County, you are too late to the party. The getting was good even through the beginning of 2013, but the volume of sales and new listings for distressed property just keeps shrinking. My daily newsletter of new REO properties used to contain two or three new listings every day. Now I don’t bother with the newsletter since it isn’t at all unusual to go a month without a single new REO listing.

Sonoma County Distressed Property Trends

Happily, fewer distressed sales is a good indicator that the housing market has fully regained a healthier footing. A very few REO transactions were still going on in 2013, but even then the volume was down at least 90% from the peak years for foreclosures. The chart tells the tale. Six years ago there were over 300 distressed homes on the market and over 150 sales per month were taking place. Three years ago there were less than 20 listings and sales take place each month. In the last six months we have had 16 REO sales and a dozen properties are active or contingent. It’s not an invisible part of the market, but it’s down another 90% from the right end point on the chart.

From my perspective, the bargain hunters should be focusing on fixers at all price points. The value priced portions of the market are always eager for good quality homes that have been upgraded with care. You might get lucky with one of the occasional REO properties on the market, but if you are serious about actually buying a home, you will have to consider homes that aren’t financially distressed.

Cloverdale Fixer

Cloverdale is suffering from the housing bubble collapse, but that doesn’t mean the town is dead. It just means that bargains are available for buyers who would like to be in Healdsburg, but have been priced out of the market. There’s plenty of charm in Cloverdale, the wine tastes just as great, and the money you save can add up fast.

315 N. Cloverdale Blvd Stairs — Beautiful Stair Details

A case in point is an REO fixer property that has been off the market for six months while the bank was working on a fix for the failing garage. Well, the bank determined the proper fix is “let the buyer do it”, and the property is being listed again by my patient fellow agent Carole Sauers.

This 1903 gem is just blocks from Cloverdale downtown. It sits on almost a quarter acre lot with fruit trees and plenty of sunshine. There’s a terrific front porch that wraps around one side and there are many period details that buyers will want to keep. There is a basement and a sound foundation. My thought would be to lift the house a foot or two and create some great space underneath, but everyone will have their own ideas about what to do. No matter what you plan, the raw material of a great lot, great location, and classic fixer make for a bargain at only $185,000.

The house is surrounded by mixed use buildings, but the city of Cloverdale wants this to be simply residential. You can write the great American novel here, but you can’t meet your accounting or legal clients.

You’ll either need cash or a rehab loan to make this sale work. The upside on the property is probably in the $300K range today after repairs, but ten or fifteen years from now a downtown Cloverdale property is going to be very hard to find. I’ll call this one my Sonoma County Deal for the Labor Day weekend.

The Two Rocks of Two Rock

We often speak place names without thinking about what they mean. For instance, there are four Grand Views in Sonoma County, one each in Sebastopol, Healdsburg, Petaluma, and Camp Meeker. Some of these live up to their name with truly grand views. Others, not so much. There are oak place names all over Sonoma County. We have Oak St and Oak Ln, Oak Hollow, Oak Brook, Oak Vista, Oak Crest, etc. At some point, all those places probably did have oaks. Today, maybe or may not.

One place name that is quite unique is Two Rock. The native Americans on their treks to the coast used this formation of two rocks as a landmark for centuries. Early Spanish settlers called them Dos Piedras, or Two Rocks. The plural was lost in later translations to English, so this famous landmark is now simply Two Rock.

You can now buy the rocks…

It’s not every day that you get a chance to buy a historically interesting site with a history dating back to centuries of native American travel. You can always buy a house on an “oak” street or with a “grand view”, but Two Rock is unique.

The Two Rock property for sale consists of 23 acres overall with one unfinished house, a mobile home, a greenhouse, and some barns. I’d call it a fixer, for sure. According to what I have learned, the repairs on the house have been done with permits, but it’s not complete yet, and there is no certificate of occupancy. That can make financing ~~impossible~~ hard, so the ideal buyers for this property will have acquisition cash available.

Other Listings on Two Rock Road

Fixers Seeking Dreamers

Nicely-boned large fixers from the Victorian through Craftsman eras have always attracted me. In the first place, their exterior designs are often beautiful, and almost always handsome. Clearly, that was the goal of their first owners who wanted to live in a home suitable to their station in life. Building plans by mail and in book form were widely available, so everyone had access to elaborate plans. The best builders in each town were putting up grand homes outfitted from huge catalogs of trim and fittings. In the case of the grandest homes, only the best materials and workers were used. Today’s fixer might have been a Sonoma County luxury home of the times.

Matheson Fixer in Healdsaburg — Matheson St. Fixer in Healdsburg

A typical house built in that 1875-1925 time frame represents thousands of man hours of labor. From the laborers who dug foundations and hauled materials to the masons who built strong and true stone and brick walls and fireplaces, often with great artistry. From the plumbers and electricians who were just learning the right ways of applying their trades to a modern residence. Above all, from the master carpenters whose work included amazing technical sophistication in such features as framing a cupola, creating wondrous round porches, crafting bow-fronted turrets, hanging massive pocket doors, melding eyebrow dormers into roofs and so many other beautiful examples of wood artistry.

To see a former classic now experiencing diminished glory can be a sad experience. On the other hand, my focus is all about finding new owners with the energy and vision to undertake a major projecdt. I’m looking for people who share the sense of value in historic places. Who can pause in front of an old window with wavy glass and appreciate that five or six generations of people have looked at that same view. Who can visualize families gathering around the piano to sing art songs which would have been the entertainment of the day. Who can imagine summer evenings on an ample porch serving as the social gathering spot for a neighborhood. Who can understand that the best way to serve their town is to salvage a piece of it.

Of course, fixers don’t have to be brought back to full glory every time. I’m happy enough just to see people begin to keep a house from deteriorating. That can be as simple as repairing the roof and adding a coat of paint or two. Sure, it’s great to replace the old brick foundation, rip off the 1950’s tacky remodel, and try to get the worst problems repaired, but just stopping the aging process is the most important first step.

There are always fixers available. They may not be cheap. They may not be grand, but if the idea of saving and living in a piece of Sonoma County history appeals to you, get in touch or click on any of the images below to get more details.

Healdsburg Machine Shop

It’s not typical to get wine industry history, real estate, and fascinating collectibles in one post. The listing of 452 Healdsburg Avenue in Healdsburg as a commercial real estate investment precedes a mid March auction of the contents of the building, a hub of inventiveness in the wine industry after prohibition ended.

Healdsburg Machine Shop was famed for their de-stemming and crushing equipment which is in service all over the world. Their great creative phase was in the 30’s and 40’s when a slew of patents were granted to the inventors, but they continued production and servicing operations until a decade ago.
Next time you drive by this classic facade, give a thought to the inventiveness and creativity that went on inside. If you’re a dreamer and a potential entrepreneur, you might want to think about this space as a home for your venture.

Vanishing REO and Short Sales

Cloverdale Fixer

The Two Rocks of Two Rock

Fixers Seeking Dreamers

Healdsburg Machine Shop

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Home Buyer’s Guide

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