Don’t be mislead by the prior sales info now included in the Chronicle’s list of “Homes Sold”  Today’s Real Estate section listed a  2 BR home in Piedmont which sold for $910K in August 2005 sold on Jan 30 2009 for $730K. 

The 20% decline in value is very likely due to a purchase where the buyers chose not to perform inspections prior to removing contingencies.  Unfortunate that the home went to Foreclosure. 

Another Piedmont home sufffered an even worse economic consequence when it sold in August 2008 for $660K.  The owner purchased the home in July 2005 for $840K.  I spoke with the owner last summer and she told me she was highly motivated to purchase the home in 2005 when the market was HOT so her daughter could complete her education at Piedmont High School.  The owner also told me the Realtor that “represented” her when she purchased the home was someone in her church from the Peninsula….not from Piedmont or Alameda County.  Unfortunately, that Realtor advised her to purchase the home with no inspection contingency. 

An inspection last year by a prospective buyer revealed >$100K of structural repairs which were not disclosed to her three years earlier.  The home did not go to Foreclosure, nor was it a short sale.   She suffered a $180,000 loss to her equity and did not receive foregiveness on her mortgage.  If this situation happened just a few months later she would likely have been able to work with the bank for a loan modification or short sale. 

Hopefully this type of misfortune will be avoided in the future.   

BUYER’S NOTE:  Work with a professional local Realtor, ask for references and check them!