Although most homes for sale are Standard Sale listings, there are some homes that must be sold in different ways, and each can lead to different escrow lengths. Given this, it is important to learn what the differences are so you know what to expect when you get into escrow, no matter what type of sale it is! Lets explore some of the differences between each:
A standard sale refers to the sale of a property that is being sold by a homeowner who has equity or value in the property above and beyond the amount they owe, if any.
In these transactions you are dealing directly with the owner of the home, Standard Sale escrows move as fast as the lender does, seller willing of course. Under normal circumstances without any major delays, you can expect to close escrow between 21 and 35 days or so. Cash offers, as mentioned previously, will have the ability to close as soon as buyer and seller come to terms, which can happen in days!
A trust sale involves a property that is held in a trust and is being sold by an estate via instructions provided by the original owner of the property who has passed away.
In these transactions you are dealing with a trustee who is in charge of making decisions for the estate. Fortunately, Trust Sale transactions do not need to go though the courts, so there is usually no additional time needed to close. You can expect these transactions to last just about as long as a Standard Sale.
A probate sale refers to the sale of a property being sold by the state court because no instructions were left by the deceased owner.
In these transactions you are dealing with an executor from the court and progress can be quite slow. A typical probate escrow can last from 8 to 12 weeks or more.
A short sale refers to the sale of a property that is being sold by a homeowner who has negative equity or no equity.
In these transactions you are dealing with the homeowner, but also with the current lender on the home. In these situations, the homeowner wants to sell the property in order to eliminate the mortgage debt. However, the lender needs to approve the transaction, as they need to ensure the loan can be paid off by the proceeds of the sale. Given that the lender must approve the sale in order to move forward, these transactions have escrows that last anywhere from 45 days to several months.
Although interest rates have settled in the 6% range for much of the new year, housing inventory remains low, but prices have started to decline.
The San Pedro housing market for February 2023 saw significant changes to the average sale price of homes, indicating that rates may be putting pressure
The San Pedro housing market started 2023 strong, similar to the fourth quarter of 2022. Interest rates decreased slightly, helping raise the average sale price
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