One of the most important factors in real estate is how long a property has been sitting on the market. The “days on market” (DOM) number is critical in a city like San Francisco, where properties typically go into contract with multiple offers within a week or two of coming on the market. The single-family home segment is a particularly hard nut to crack, as a majority of buyers would prefer houses to condos.
So when a single-family home has been out there for 30 days or more, it’s a sign of one of two things: The sellers are sticking to their price and won’t sell unless they get that, or there might be room to negotiate a lower price. Indeed, sales data from the last quarter of 2019 indicates that there are more sellers out there in the first camp.
More than half of the single-family home sales reported closed in Q4 2019 ended up selling for at or above asking. That left only 79 houses changing hands for under the list price.
There were a few clusters of these sales that happened in specific neighborhoods or price points. It’s hard to say whether these are trends, but we’ll be referencing these most recent sales when it comes to pricing homes and figuring out offer amounts. For example, if you’re about to list a house in Eureka or Cole Valleys in the $3,000,000+ range, or a house in the north end of town for $5,000,000+, you’ll be better off pricing closer to market value.
Neighborhoods with the most of these under-asking sales included Bernal Heights, Eureka/Cole Valleys, Cow Hollow, Ingleside and Silver Terrace.
San Francisco isn’t a cookie-cutter town, and there are always stories behind every sale. But I thought I’d take a look at a few homes that sold for dramatically under the list price:
181 Collins | Jordan Park (photo, top left)
3BR/1.5BA, 2 pkg
140 Belgrave | Cole Valley
3BR/3BA, 0 pkg
2345 Divisadero | Pacific Heights
5BR/7.5BA, 1 pkg
50 Arguello | Presidio Heights
5BR/4.5BA, 6 pkg
Don’t overlook homes that have been sitting in the MLS for a month or more. They could turn out to have surprising outcomes in comparison to the rest of the San Francisco market.