Many buyers who start out looking for a condo in San Francisco often end up deciding that they’ll join forces with their friends or family members to purchase a two-unit building. This can be a good decision, but it’s important to be aware of the key factors to consider when deciding whether such a group purchase is possible—or a good idea. Continue Reading
Tenancy-in-common (TIC) loans are no longer limited to adjustable-rate terms. It’s official: You can now get a 30-year fixed loan.
Part of the reason fractional loans haven’t moved beyond adjustable-rate mortgage (ARM) products is because the idea behind TICs was to condo convert in a few years. So you’d end up refinancing out of the TIC loan, anyway. Plus, the handful of TIC lenders out there wanted to limit their exposure in the riskier fractional financing market.
But condo conversion has long been suspended for buildings with three or more units, so that aspect isn’t really relevant anymore. And fractional loans have turned out to be successful for lenders, as there haven’t been many loan defaults among the well-qualified buyers who meet the lender guidelines for income, credit and assets.
Lenders are obviously now comfortable offering a longer fixed-rate term, and TIC owners, in turn, seem to be staying in their properties as long as condo owners do—-in many cases, beyond three or five years.
So for those who are wary about being exposed to a higher interest rate after an ARM adjusts in the future, a 30-year fixed TIC loan could be a good fit. Continue Reading
The tenancy-in-common (TIC) market slowed to a crawl in the last quarter of 2020, with almost 100 cancelled or expired listings laying by the MLS wayside. With the condo market cooling due to Covid, it was no surprise that the less conventional TIC took a bit of a hit, as well.
But 87 TIC interests did end up selling (up from 70 sold in Q4 2019) despite these challenges. Buyers snapped up TICs in popular neighborhoods like Noe/Eureka Valleys, the Haight, Hayes Valley, NoPa, Marina, Russian Hill and the Mission in search of prime locations and more space than condos can typically offer for the same price. Continue Reading
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
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
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.
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
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
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
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
The San Francisco tenancy-in-common (TIC) market for three or more units reached new heights in 2014, with the average sale price of $940,433—up 26.5% from its average in 2013. Continue Reading
As the current crop of TICs converts to condos, I’m seeing many owners listing their TIC interests prior to the actual condo conversion of the entire building. This means the buyer is expected to step in at the tail end of the condo conversion and work with all existing owners as they refinance and everyone completes the conversion process.
In other words, whether there’s a group loan or fractional financing in place, all new condo deeds have to record simultaneously. If there is one owner in the group who doesn’t have a loan, that owner needs to wait until everyone’s refinancing/new purchases are completed prior to obtaining a condo deed. Continue Reading
Tenancy-in-common (TIC) interests have traditionally been popular with buyers who value a more central location in a desirable neighborhood. Because when it comes to affordability, TICs still will get you more space in a better location than a condo will.
And the neighborhoods in which TICs have sold recently read like a who’s who of hot ‘hoods. Here’s where buyers purchased their TICs from October 2013-February 12, 2014: Continue Reading
The Board of Supervisors approved the controversial condo conversion lottery bypass this week, for better or for worse. Depending on whether you’re a homeowner or renter, you’ll be happy with the outcome.
Despite the shaky ground upon which some TICs stand, luxury TICs are out there and buyers are snapping them up. We take a look at a trio of high-end TICs that are worth considering.
It’s all here in this edition of the Zephyr MarketTracker!
The San Francisco Board of Supervisors Land Use and Economic Development Committee was scheduled to vote today on legislation that will potentially allow some TIC homeowners to bypass the condo lottery and pay a one-time fee to complete their unit’s conversion. As is typical with any legislation that affects homeowners and tenants, the issue is controversial.
And the vote has been delayed by a month, as Supervisor Mark Farrell reportedly wants additional time to talk with tenants’ rights groups.
I am, of course, a homeownership advocate (and former renter). And there are two sides to every issue. But I’m thinking that there’s something to this TIC legislation that should be able to work. In a city where two-thirds of all residents are renters—and property taxes help subsidize many things here—the Board of Supervisors should take a balanced view of the condo conversion issue and update its position so we don’t have a bunch of homeowners languishing in the lottery.
Check out the story (with link to the original audio broadcast) here: “San Francisco Struggles With Decision That Could Help Some Homeowners—And Hurt Renters.”
415.823.4656
eileen@insidesfre.comDRE# 01352627
⇧
Back to Top
⇧
Back to Top
There is no custom code to display.