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Open House Spotlight: 15 North View Court

April 30, 2010 By Leave a Comment

It’s not easy to find a house for less than, say, $1.5M in Russian Hill. But the 2BR/2BA, 1920s Marina-style home at 15 North View is listed at $1,379,000.

Located on a cul-de-sac off Bay Street, the home has nice period details, including mahogany floors and coved ceilings. There’s also a limestone fireplace hearth and a kitchen with Brazilian White Persa granite. Throw in a two-car garage and landscaped garden, and you’re set.

I particularly like the spacious bedrooms. Here’s one now:

Take a walk over to the waterfront, stop in for a sundae at Ghirardelli Square, and pop in to the open house on Sunday from 2:30-4:30.

Filed Under: Russian Hill

"As Is" Sale: Fantasy or Reality?

April 28, 2010 By 5 Comments

There’s an addendum that frequently makes it into the purchase agreement in many transactions—the “As Is” addendum. I’m often asked by buyers what this actually represents.

The truth is, an “As Is” addendum means virtually nothing. It’s basically a warning from sellers that they aren’t going to be receptive to repairs or credits during escrow. Or, as an attorney during my company’s recent risk management seminar put it: An As Is addendum is when “sellers are putting the flag up and keeping their fingers crossed” that the buyer won’t try to negotiate anything.

Most buyers include an inspection contingency in their contracts, meaning they have a certain period of time to have professional inspectors evaluate the property. Even though a buyer may have been presented with and signed an As Is addendum, that doesn’t mean the buyer waives his or her right to either back out of the sale, or request repairs/credits. Whether the latter happens will be more a product of the inspection results, and how reasonable the sellers really are.

Filed Under: Home Buyer Tips, Home Owner Tips Tagged With:

Attack of the $1M+ Condos

April 27, 2010 By Leave a Comment

Is it just me, or are there an awful lot of luxury condos on the market right now?

There are currently 143 condos available in the $1M+ price range, according to the San Francisco Association of Realtors (SFAR) MLS. And of these, 66 are in the $1M-$1.3M range. A total of 27 condos are priced from $2M-$7,350,000.

SoMa and South Beach have the bulk of the inventory, with a whopping 50 condos in the $1M+ range. If you’re a seller in this category, it might be time to revisit your pricing and competition. And buyers, work those negotiations; it’s definitely your market in these neighborhoods.

And that most expensive, $7,350,000 condo? The 3BR penthouse at The Infinity.

Filed Under: Market News Tagged With:

Spring Inventory Spikes in San Francisco

April 26, 2010 By Leave a Comment

I’ve been asked lately about whether there are more properties on the market, now that Spring has arrived. And the answer is–yes.

Real estate in the city seems to be folllowing in the usual footsteps created by seasonal human behavior. Sellers believe their homes show better in nicer weather, school is winding down and it’s time for a move. Buyers are happier to be outside and stopping in at open houses, and feel they can put time aside over the summer to move.

Indeed, over the past week, a total of 64 houses, 73 condos and 14 TICs came on the market. Agents are reporting higher open house traffic, and the number of ratified transactions is climbing at my offices. The second quarter of this year has got to be better than that of 2009, when only nine single-family homes, 10 condos and one TIC were reported sold. I know. Those were pretty abysmal, though not surprising, numbers. Here’s to a better second quarter in 2010.

Filed Under: Market News

Haight House Morphs into Luxury Condos on Page Street

April 23, 2010 By Leave a Comment

The 2BR/1BA house at 1860 Page Street (above) was officially sold in 2003 for $675,000. It appears that permits were issued sometime in 2007 for constructing four units on the site. And it now looks like the project is done:

There are now four luxury condos in a modernist building on Page at Shrader, from a $449,000 garden-level studio to a 3BR/2BA listed at $1,089,000 (the other two 3BR/2BAs are priced at $1,049,000 and $1,059,000). All the bells and whistles are there—radiant heat, “professional” kitchens, white oak flooring, Marvin windows and full marble baths. Let’s not also forget the double crown molding, open living/dining areas with stone-mantled, gas-burning fireplaces, and custom paint.

First open next week, but contact me if you’d like to get in sooner.

Filed Under: Haight/NoPa Tagged With: ,

Bathroom a Mind Blower in Russian Hill

April 23, 2010 By Leave a Comment

The 1940s, art deco building over at 60 Bret Harte Terrace boasts one hip guest bath (above). Kinda makes you feel like you’re taking a break from the dance floor.

And the rest of the 2BR/2BA, 1,851-square foot condo on the very cute Bret Harte Terrace is pretty nice, too. There’s a “grand-scale” living room that faces the bay, chef’s kitchen and spa-like master bath. There’s also one-car tandem parking. List price is $1,295,000, and the unit last sold in 2006 for $1.1M.

Open Sunday, 2-4.

Filed Under: Russian Hill Tagged With: ,

GreenFinanceSF Saves Homeowners "Money, Energy and Water"

April 22, 2010 By Leave a Comment

Private property owners in San Francisco can now finance energy/water efficiency and renewable energy improvements through homes and businesses through the GreenFinanceSF program.

If the property owner is approved for financing, the city will issue payment for the upfront cost of the project, plus interest through a voluntary special tax for the life of the financed improvements (up to 20 years). If the property is sold, both the property improvements and the remaining debt stay with the property and are passed on to the new owner. So make sure you disclose any unpaid “green” debts when you eventually sell your property.

Check out the program, it’s great for things like replacing windows and upgrading heating systems.

Filed Under: Home Owner Tips Tagged With: ,

SFGate: Foreclosure Activity Down in First Quarter

April 21, 2010 By Leave a Comment

I spoke with the San Francisco Chronicle’s Robert Selna yesterday about the foreclosure activity I’ve been seeing in the San Francisco market. The upshot of the story: Fewer homeowners in the Bay Area and California are headed down the path toward official foreclosure in the first three months of 2010 compared with the prior quarter and with a year ago.

As I maintained in the article, I’m not seeing a wave of foreclosures on tap in the city that will dramatically affect home prices. Of course, there will be foreclosure and short sales popping up, but compared with the overall number of homes that sell in a given year, the foreclosure numbers are fairly small.

Read the full Chronicle article here.

Filed Under: Home Buyer Tips, Home Owner Tips, Market News Tagged With: ,

HOA Delinquencies on the Rise

April 21, 2010 By Leave a Comment

One of the trends in condo living that I’m seeing is the rise in delinquent homeowners association (HOA) dues. This has become more of an issue over the past three years, as foreclosures and short sales result in HOA members stop paying dues.

The result of HOA delinquencies, unfortunately, is that the HOA financial reserves can become deficient and unable to keep up with operating costs or building repairs. This is particularly important in older buildings that, say, will need a new roof in the next year, or will require extensive elevator repairs. If the HOA reserves will barely cover the basic operating expenses outlined in the budget, it’s likely that residents will have to vote on and execute a special assessment for a large expense, thus increasing costs unexpectedly.

Additionally, HOA members sometimes end up deciding to cover another unit’s dues. Something like $450/mo split among 25 units doesn’t seem like much. But if it has to be done for several months—or for more than one unit—the bills can start adding up. Either way, delinquent HOA dues can potentially create out-of-pocket costs.

If you’re considering a condo purchase in a particular building, review the financials—budget and reserve amounts—as well as HOA meeting minutes. Those documents will give you a sense for whether the association is operating in the red, black or somewhere in between. The meeting minutes typically will give you insight into impending problems. And have your agent check out the property for foreclosure activity (preforeclosure and otherwise), which is information that’s been available for a while.

Filed Under: Home Buyer Tips Tagged With: ,

SoMa "Crash Pad" Launches Spring Studio Season

April 19, 2010 By 2 Comments

Touted as “the ultimate crash pad,” the 497-square foot studio at 74 New Montgomery #212 has high ceilings, high-end finishes, in-unit laundry, and access to a roof deck with great city outlooks and a bbq area. The unit is listed at $442,000, with HOA dues of $635/mo and optional, leased parking available next door for $475/mo. To soften the blow, the seller will be offering a year’s worth of HOA dues and parking that are leftover from his initial purchase.

The New Montgomery studio is definitely in a prime location for buyers looking for a place to hang their hat in an extremely walkable, central location. (The building has a 100 Walk Score.) It’s half a block from Market Street and all the public transportation options there, as well as a quick jog over to the freeway. And you’re smack dab in the middle of an area with a multitude of restaurants, gyms and other businesses that define the word convenience. And oh, yeah, if you work downtown, you can walk to work. The fact that 74 New Montgomery is approved for FHA loans makes things even easier.

The studio market in San Francisco has picked up lately, with 53 units currently available at an average price of $366,780. And 39 studios have sold in the city since October 2009, at an average of $331,610 (avge $610/sq foot, and 523 sq feet). If you’re open to a studio, my advice is to pick one in a fabulous location and make your life a little easier.

Filed Under: SoMa/South Beach Tagged With: ,

Open House Spotlight: 226 Ritch #302

April 16, 2010 By Leave a Comment

The weather’s supposed to be pretty nice this weekend, so head on over to the open house at 226 Ritch Street, on the border of SoMa and South Beach. I’ve always been a fan of Ritch Street’s location, as it’s right around the corner from South Park and near some cool restaurants like Bacar, Brickhouse, Tres Agaves, and bars like District. You’re kind of far enough away from freeway overpasses, yet close enough to the ballpark without being wildly impacted by the traffic and crowds that populate the area during baseball season.

But back to unit #302. Two bedrooms, two baths, 1742 square feet (!), four decks, and a huge master suite. List price: $789,000 (that’s $453/sq foot). Even better, the unit last sold for $565,000 in 2001, so it doesn’t appear there will be any financial distress in this sale.

Open 2-4 on Sunday.

Filed Under: SoMa/South Beach Tagged With:

Hayes Valley House on Grove Gets Picked Up By Cash Buyer

April 15, 2010 By Leave a Comment

I toured 554 Grove in Hayes Valley shortly after it came on the market in mid March. The 3BR/2BA, tunnel-entry house had an original kitchen/bath, master suite on the garage level and about 1684 square feet. The termite report was around $7500, and the windows and roof needed some attention. List price was $799,000, which was comparable with condo prices in the area.

One drawback was the house next door—a sort of ramshackle building set back from the sidewalk and filled with cars in the front of its lot. But the location, on Grove between Laguna and Octavia, is just around the block from the heart of Hayes Valley.

Obviously, a buyer liked everything about the property enough to purchase it for $930,000, in an all-cash transaction. So that gives you an idea as to what you can expect to pay for a standalone, single-family home of this size and condition. This is one of the smaller homes in the neighborhood, given that Hayes Valley tends to feature large Victorians or multi-unit buildings. If you’re looking for a condo, the average price for one in the first quarter was $750,929.

Filed Under: Hayes Valley Tagged With: ,

Buyer Target: Mission Bay Much More Affordable

April 14, 2010 By 1 Comment

The always-developing Mission Bay neighborhood has had its share of suffering in the housing recession over the past two or three years. It’s been said that a good chunk of homeowners in the area have been keeping the Assessor’s office busy, applying for reductions in property taxes due to fallen property values. All told, Mission Bay condos have lost anywhere of up to 20% of their value, depending on the unit size, outlook, building/amenities, and other relevant details.

Indeed, the average reported 2BR condo sale in Mission Bay was $1,084,973 in 2008, but that number declined to $846,787 in 2009. Of course, these numbers aren’t solidly representative of actual sales activity, as the many new developments in the area never reported sales via the Multiple Listing Service (MLS). What this all means is that Mission Bay provides buyers with a great opportunity right now.

There are currently 16 condos on the market in Mission Bay, with a bulk of them in The Beacon (250-260 King). However, there’s an 1175-square foot 2BR/2BA in one of my favorite buildings, The Radiance, listed at $749,000, as well as a 1268-sq foot 2BR/2BA at 255 Berry #606 listed at $869,000 (the latter likely a tad high in today’s market). And there are 23 Mission Bay condos currently in contract, at an average price of $545,405/$572 per sq foot. So it’s quite possible for all those first-time home buyers in the $500,000 ranges to find a decent property in what I believe is a very vibrant part of San Francisco.

Filed Under: Mission Bay Tagged With:

Condo Living: Leave Your Pit Bull at the Door

April 13, 2010 By Leave a Comment

It used to be that condo associations limited their pet restrictions to two pets per household. Then some buildings started throwing in weight restrictions. These days, it’s become commonplace for CC&Rs to ban certain dog breeds.

This is particularly true in new-construction buildings. Two of my clients are in contract at new developments 555 Bartlett and 233 Franklin (LindenHayes), and the CC&Rs for both buildings specifically state that Pit Bills, Presa Canarias, Rottweilers, Doberman Pinschers, Mastiffs or any other fighting breed cannot live in the building. 233 Franklin also restricts the weight limit for dogs to 100 pounds combined per unit.

With older condo developments, you’re probably good to go if you own one of the aforementioned breeds, unless there is a weight restriction or the particular HOA has amended its CC&Rs to ban the breeds. So before you write your offer on that nice 2BR condo in Pacific Heights, check to see if you’ll be able to bring your dog along.

Filed Under: Home Buyer Tips Tagged With: ,

State of the TIC Market: Q1 2010

April 12, 2010 By Leave a Comment

It’s always interesting to check in on the tenancy-in-common (TIC) market in San Francisco. And it just so happens that this segment of the housing market continues to be very popular.

A total of 67 TIC interests sold in the January-March timeframe, at an average of $576,140. All but a handful were located within 3+ unit buildings. The least expensive was a standalone garden cottage on 7th Avenue in the Richmond, which sold for $250,000, and the most expensive was a 2BR/2BA TIC in a six-unit building in Cow Hollow. Hayes Valley, the Lake district, and Russian Hill led the way in sales volume.

The average price in Q1 2009 for the 49 TIC interests sold was $710,582. Prices have definitely come down since then.

There are currently 73 TICs in contract—a healthy number that bodes well for the next quarter’s sales. But 189 TIC interests are on the market right now. But with 702 condos also competing for buyers’ attention, it seems to me that the TIC market will slow down a bit in the Spring. I believe the Spring will bring out many new buyers—I’m getting referrals on a daily basis for new buyers aiming to make a purchase in the next three months—and most would rather take advantage of the lower condo prices than get involved in more complex ownership scenarios.

I think the TIC market has decreased in risk with the advent of fractional financing. However, the open question is how long fractional loans will be available, which may or may not bode well for those who own properties through this method of financing. Resale prospects are limited for TICs with fractional financing, as the pool of buyers that can qualify and afford fractional loan program is small.

If you find yourself considering a TIC purchase, please do yourself a favor and have an attorney review the TIC agreement and other critical documents before you remove your document review contingency. Work with your agent to investigate all the details so you know what to expect going in to the purchase. The bottom line is that TICs can work well for buyers who are looking to get into the more popular neighborhoods where condo prices have escalated. But it’s still important to do your due diligence at all turns.

Filed Under: Market News, TIC's Tagged With: ,