Over the past three to four weeks, I have watched the San Francisco market go from being a slow moving market to one picking up speed. Based on my colleagues’ experiences and mine, I think it is fair to say that San Francisco is in a “mixed market” right now.
At recent sales meetings, I have heard a number of colleagues say that they have been in multiple offer situations, particularly for homes but for some condos as well. The condos that seem to be getting multiple offers are those located in smaller homelike 2-3 unit buildings. At the same time, I have seen quite a few price reductions for condos and occasionally for homes in the emails I receive from my colleagues.
Recently, I brought a sweet 4 bedroom Lone Market home on the market (its cozy living room pictured here) for clients and I made an offer on a 2 bedroom Noe Valley home for another set of clients. The Lone Mountain home was the only home on the market in the area near USF which is becoming more popular. I gave out 26 disclosure packages and received 5 offers with the prevailing offer going substantially over the list price.
As you may know from my earlier posts, when potential buyers are seriously interested they request a “disclosure package” that lays out a wealth of information about the history of the property. Sometimes only one or two are requested, sometimes more, but 26 is a lot of interest!
The cute 2 bedroom Noe home my buyers made an offer on also had a lot of interest. According to the listing agent, 23 disclosure packages were given out and she received 7 offers. My clients’ offer did not prevail; it was their first. Both of these properties were well maintained and were in move-in condition and showed well.
Two other condos my buyers recently looked at went relatively quickly into contract. One was a beautifully renovated 3BR middle unit in a 3-unit building in NOPA. It took a price reduction to move it and it is now “pending” after 34 days. The other 3 BR condo also in a 3-unit building in NOPA was quite spacious and had a lot of character but the building was not very well maintained and it had a large pest report and other items that would need attention. However, after 9 days, it received an offer. Whether it goes into contract remains to be seen.
A mortgage broker I know mentioned that 2 clients he had made offers and got into contract on fixers but when they investigated how much the renovations would cost, they both backed out.
In conclusion, it feels like the SF market is indeed picking up for some properties while others lag behind. Buyers are looking for nicely renovated homes and condos in smaller buildings in popular locations that show well. For these properties, buyers should prepare to be involved in multiple offer situations. For properties that do not fit in this category, buyers have more opportunities to negotiate since these properties tend to stay on the market longer and some have their prices reduced.