Category Archives: TICs & Multi-Unit Bldgs

TIC Market Stays Alive During Corona

TIC Market Stays Alive During Corona

The tenancy-in-common (TIC) market in San Francisco is a small one, with about a tenth of the condo volume at any given time. Buyers tend to shy away from TICs when there’s a glut of condo inventory, as the former are a bit more complicated. But if you’re looking for more space and a better location than your condo budget allows, you may want to consider one of the TICs currently on the market. Continue Reading

The Difference Between a TIC and a Condo

It’s not always obvious whether a property is a condo or tenancy-in-common (TIC) when you’re a buyer who’s searching online for properties. You have to click in to all the details before you realize that the photos of the wonderful “flat” that seems listed kind of low is actually a TIC.

But what’s the difference between a TIC and a condo? All things being equal, couldn’t you just buy a TIC if it has the space and location you want? Continue Reading

Adding ADU To House, Duplex May Not Be The Best Idea

The climate is ripe for adding housing in San Francisco, and that extends to the city’s efforts to make adding an accessory dwelling unit (ADU) to a property easier. But whether you should move ahead with “legalizing” an existing in-law apartment—or creating one—depends upon what type of property you own.

If you own a building with three or more units, adding another one won’t really introduce new use restrictions on the building or resale complications. Continue Reading

SF TIC Market: Small But Mighty

SF TIC Market: Small But Mighty

Tenancy-in-common (TIC) interests accounted for a small portion of San Francisco sales in 2019. But the average price was almost $1,300,000, and there were a fair number of luxury sales in the $2,000,000+ range.

Only 262 TICs sold in 2019—a comparably small quantity compared to the 2,530 condos sold. But the fact that there is a still a solid market for a property type that involves sharing title with other building owners speaks to the risks buyers are willing to assume in their quest to become San Francisco homeowners. Continue Reading

COPA Legislation Now In Effect for SF Multi-Unit Building Sellers

The Community Opportunity to Purchase Act (COPA) is now officially in effect for sellers of multi-unit buildings.

I first blogged about the COPA back in June. The legislation wasn’t scheduled to go into effect until September 3, 2019. In a nutshell, COPA gives non-profit housing organizations the first right to purchase residential buildings with three or more units. The city is hoping that COPA will help preserve affordable housing.

Sellers of three or more units now have to provide a formal notice to the Qualified Nonprofits (QNPs) via email prior to marketing the property to the public—and prior to listing the property on the MLS or in a “coming soon” capacity. Continue Reading

Can I Turn Two Units Into A Single-Family Home?

One of the most frequently asked questions in San Francisco is how easy it is to turn a two-unit building into a single-family home.

The short answer: It’s a real challenge to get permission from the city for this sort of transformation. This is because the city ultimately does not want to lose housing stock—particularly when it comes to rental units. Continue Reading

TIC Market On Firm Footing in 2019

Tenancy-in-common (TIC) interests are still successfully attracting buyers in the current San Francisco real estate market, despite their inherent risks that include sharing title with multiple owners.

TICs traditionally account for a much smaller slice of the pie. For example, 179 condos have sold year-to-date, and only 29 TICs have changed hands. But these sales offer a good sampling of what you can expect in this segment of the market.

For one thing, most TICs are selling at or below list price and are bucking the list-low, sell-for-more pattern that’s the norm for condos and houses in San Francisco. Here are some tips: If you’re a TIC seller, don’t list your unit for well below its value. And if you’re a TIC buyer, consider units that are around the price you can afford to pay.

Continue Reading

Know TIC Loan Guidelines Before You Start Your Search

Tenancy-in-common (TIC) interests require what’s called fractional financing. You essentially have a loan on your interest in the property instead of sharing one loan with all the other TIC owners.

Many buyers seriously consider TICs because they know they’ll typically get better space in a more central location than they would from a condo.

But the loan guidelines for fractional financing are different from the ones for condo loans. So before you hit the open house circuit, check out these guidelines courtesy of TIC loan expert Gordon Friedman at Guarantee Mortgage:

– 1% origination fee: All TIC loans require an upfront fee equal to 1% of the loan amount borrowed Continue Reading

State of the TIC Market: February 2018

State of the TIC Market: February 2018

Buyers snapped up tenancy-in-common (TIC) interests in San Francisco’s most popular neighborhoods over the past six months, proving that the TIC market is alive and well despite its inherent ownership risks.

TICs represented a fairly small percentage of overall sales from August 2017-January 2018. Though almost 1100 condos sold in that timeframe, only 118 TICs did. The TIC median price was $1,017,500—closer to $1.2M for TICs in two- to four-unit buildings. But more than half of all sales were for TICs in buildings with five or more units, notable and surprising because these properties won’t be eligible for condo conversion if the lottery indeed resumes in 2024. Continue Reading

State of the TIC Market: August 2017

The tenancy-in-common (TIC) market remains strong in popular neighborhoods like Noe Valley and Russian Hill, especially if that TIC is in a two-unit building.

Buyers haven’t shied away from purchasing TIC interests, despite limitations related to 2013 legislation that significantly reduced the number of properties allowed to condo convert. Many TIC owners have resigned themselves to the reality that they hold title to “permanent” TICs.

TICs in two-unit buildings aren’t affected by that legislation if each unit is 100% owner occupied. In that case, both owners can pursue “fast track” condo conversion. Continue Reading

Condo Conversion Still Possible for TIC Buildings

The Board of Supervisors suspended the city’s infamous condo conversion lottery in 2013 until 2024, replacing it with an expedited conversion for eligible TIC groups. However, you may not know is that some TIC groups are currently eligible to condo convert.

It all has to do with the date of your TIC agreement, says law firm Goldstein, Gellman, Melbostad, Harris and McSparran. Three- to six-unit buildings that had a signed TIC agreement in place as of May 1, 2013—and which meet new six-year owner occupancy requirements—will be eligible to condo convert over time. Owners will each need to pay the $21,000-per-unit fee, as well. Continue Reading

What You Need To Know About TIC Ownership

Many buyers are considering tenancy-in-common (TIC) units these days, given the cost of real estate in San Francisco. TICs are typically priced lower than condos, and you can generally get into a neighborhood that you might not be able to afford were the property a condo.

But before you run out to see that two-bedroom condo in Cole Valley listed for only $699,000 that you saw on Redfin, you need to know the TIC basics. Continue Reading

First-Time and Luxury Home Buyers Embrace “Permanent” TICs

Once seen as a stepping stone to condo ownership, tenancy-in-common (TIC) interests have become widely acceptable to San Francisco home buyers as “permanent” TICs. But it’s not just the first-time home buyers who are getting into the TIC game. Luxury buyers are also jumping in.

The fact that condo conversion probably won’t be a future option for TIC owners in buildings with three or more units doesn’t seem to be slowing TIC sales. Continue Reading

Get in touch:

Eileen Bermingham

Corcoran Global Living

415.823.4656

eileen@insidesfre.com

DRE# 01352627

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