Fall selling season is nearly upon us and word on the street is new inventory is coming! One of my good real estate buddies called it a relative listing ‘tsunami’ -- and just like the greatly anticipated Godzilla El Nino rainy season, it can’t come too soon. San Francisco has a woefully small amount of new construction in planning compared to the estimated 10,000 new residents per year. With a heavy rainy season, a decent chunk of new inventory hopefully upon us, and the widely expected September interest rate hike looking less likely, I’m going to be looking for some good buying opportunities this fall for myself and my clients.
The newsletter that follows has more details but please let me know if there's anything you'd like more information on. As always you can always unsubscribe at any time here or at the link below.
Have a wonderful weekend!
In every market there are always ‘deals’. You just have to know where to look, how to win them and be prepared to act. A wise real estate guru of mine once said, "You make your money on the purchase," and I have a couple of great recent examples of that just this month:
I recently represented a couple relocating within the city. They were looking for a different neighborhood and trading out of San Francisco’s South of Market district into one of SF's more traditional neighborhoods. We helped them with their sale which we did 'off market' for a number of reasons. Both buyers and agents look at DOM (days on market) when they are determining value and based on the price they were looking for I knew the sale could take some time as we were waiting for just the right buyer. I felt an off market sale through Top Agent Network was the best move and it worked.
I then went to work on their purchase, and we found a stunning view residence in a historic Art Deco building smack dab in the middle of Nob Hill. We made a very aggressive offer play and won the property for well below current comp prices in the area. Six weeks after they bought, they realized it wasn’t their forever home (it happens)… so we weighed our options. They were willing to sit on it for a couple of years, or possibly take the ‘hit’, but we bought it for such a good price I felt strongly I could get their money back out of it. They gave me free reign to re-stage it with the vendor of our choice so we got it back on the market for $200,000 higher than we bought it for six weeks earlier and went into contract in 72 hours. I’m happy to say we closed today at their list price of $2,700,000.
On the other end of the spectrum, I recently worked with a lovely couple who are stationed overseas. They had 2 weeks to buy a property in the Bay Area. They were moving back after their work contract expires and had been watching the market for the past couple of years -- concerned they would be priced out if they waited. After looking at a couple of options in East Palo Alto and Oakland, I found them a lovely home in San Francisco, five minutes from the Mission with expansion potential. Come offer day I presented our offer in person and really sold them as the right buyers and that we were very interested in keeping the existing tenant who the Seller wasn’t interested in displacing if he could help it. Personal relationships matter! We ended up being the winning bid for a home in need of a good remodel (one day) that we bought for $630,000. A home one block away, that was recently remodeled - probably a $95,000 cost - just closed the week prior for $800,000.
If you'd like expert advice on selling, buying or moving up, please don't hesitate to reach out to me at 415.738.7001 or Meredith@OpeningDoors.me.
"My words may not come close to describing how amazing [Meredith] is! She is an absolute rockstar. Going into escrow was the easy part. Getting this loan funded was a nightmare and we came very close to the decision of having to let this property go with 3 different lenders. Meredith's confidence, resilience, amazing communication and all-in attitude, helped us see the end of this long contract. Meredith, we are so very indebted and grateful to you. Thank you so very much for using all your resources and tapping into your network to see this through."
It's been an uncommonly busy summer for real estate in the Bay Area. In fact, more single-family homes sold in the region last month than in any July since the housing bust! Even with median prices for homes and condos alike in San Francisco exceeding $1,000,000 for the 6th consecutive month and inventory at its lowest since January, the number of property sales recently has kept on pace with the spring months.
Even with prices in the area at record highs, there's opportunity to buy within the six-figure range. Almost 100 sub-million dollar condos have traded hands this year in the Noe Valley / Cole Valley / Corona Heights area alone. This past week, two properties have come on the market with list prices under $500,000: a Victorian TIC in the heart of the Mission, and a Downtown studio condo. Not only may properties like these be great investment opportunities, but shelter from the city's rent explosion as well.
Right around the corner, Labor Day Weekend marks the beginning of the last big market push before the end of the year. Historically, we see inventory spike in September, and I'm seeing many properties getting prepped right now for the open market. Employment in San Francisco is at a record high, and an interest rate hike is looming on the horizon -- all things considered, it could be the perfect storm for a frenzied Q4.
PS: Here's a first look at the 67 new condos at the corner of Franklin and Bush, expected to begin selling this winter. Additional information: 1450FranklinSF.com
Nob Hill 3 Bed & 3 Bath
Russian Hill 4 Bed & 3 Bath Buyer Represented
Excelsior 2 Bed & 1 Bath Buyer Represented
2 Bed & 2 Bath