Inside San Francisco Real Estate

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Archive for January, 2010

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A Look Inside the Mission’s Newest Development: 555 Bartlett

Posted by insidesfre on January 15, 2010

I attended a friends and neighbors party at the Mission’s new 555 Bartlett last night. The building isn’t quite complete, but it’s pretty obvious that it will cater to what San Francisco buyers need—reasonably priced units with parking in a central, increasingly hip location.

The 58-unit development is located at the corner of Mission and Cesar Chavez and features a mix of predominantly one- and two-bedroom condos.

The developer is pricing Bartlett in a very appealing price range for new construction—and for a majority of San Francisco buyers. The one bedrooms will start in the $400,000s, and the two bedrooms will be listed in the mid-$500,000s. There are a handful of three-bedroom units in the $600,000s, and a few studios. Many of the one bedrooms, some with studies, face the 26th Street side of the project, which will be quieter. The two bedrooms face Cesar Chavez.

Here’s a look at the living room of the staged one-bedroom model, along with the kitchen—and a desk area that lies between the bedroom and bathroom:

The two-bedroom model is staged a bit more whimsically, and also includes a painted “brick wall” :

Finishes are quite nice for the price point, and include quartz countertops, Bosch gas range, microwave and dishwasher, and Kohler faucets. Most units have small balconies or decks, and are pre-wired for ceiling fans and alarm systems.

There’s also an approximately 11,000-square foot interior courtyard, bike storage, an elevator, and a Walgreens on the ground level. Parking comes with each unit, but those opting for no parking can chop $40,000 off the purchase price. HOA dues will range from $270-$350/mo.

The location is extremely convenient for downtown and Peninsula commuters. BART is three blocks north on Mission, and 280 or 101 are about two minutes away. You can also walk one block to Valencia and find yourself a stone’s throw from Pi Bar, Anthony’s Cookies, and Beretta. Or head south on Mission and hit El Rio, Blue Plate, Good Frikin’ Chicken, Emmy’s Spaghetti Shack, the Front Porch, and Safeway.

Though not yet ready to be shown to the public, 555 Bartlett will open soon. And don’t get too put off by the existing exterior colors; I’m told they are primer for the final color scheme.

555 Bartlett is also approved for FHA loans.

Let me know if you’d like to schedule an appointment before the masses get through the doors.

Posted in FHA, Mission/Potrero, New Developments | Tagged: , | 8 Comments »

Mission’s Union Gets FHA Approval

Posted by insidesfre on January 13, 2010

One of the latest condo developments to get FHA loan approval is Union, the 76-unit complex at Bryant between 19th & 20th in the Mission. The project has been on the market since last year, and is more than 50% sold, according to the sales team, and it’s now possible to buy a condo in Union with as little as 3.5% down.

Union is split into two parts: the townhomes, and the recently released brick-and-timber lofts. Price ranges for remaining townhomes are $675,000-$799,000 for two bedrooms, and $820,000-$895,000 for three bedrooms.

One-bedroom lofts range from $575,000-735,000; two bedrooms are $660,000-$755,000 and three bedrooms are listed between $795,000-$859,000. The loft units tend to be smaller than the townhomes.

Before you run out to get preapproved for an FHA loan, make sure you run the numbers and find out how much your monthly payments will be. As I’ve noted in this blog before, FHA loans let buyers purchase homes who don’t have the required 20% down payment. But be mindful of how much cash you’ll have to come up with on large loan amounts.

Posted in FHA, Home Buyer Tips, Mission/Potrero, New Developments | Tagged: , | Leave a Comment »

The Ins and Outs of Unwarranted Rooms, Repairs & Remodels

Posted by insidesfre on January 12, 2010

In real estate circles, San Francisco is famous for the prevalence of “unwarranted,” or “illegal” rooms. Homeowners also sometimes tire of the city permit process, and elect to do kitchen/bathroom remodels or construct decks without pulling permits.

How does work without permits affect a home? Ultimately, the property’s safety may be compromised.

For major renovations—say, adding a unit or bedroom and bath—a homeowner will apply for a permit from the city. Besides serving as a revenue stream for the city, a permit warrants that the appropriate city inspectors have reviewed and approved electrical wiring, plumbing, etc., and that everything is up to code.

When your job is completed and approved by the city, the signoff ultimately goes on your property’s 3R, or building permit history, report. This is one of the key reports provided to future buyers in a sale. Completed permits give buyers peace of mind that any renovations or repairs that typically require permits were done according to building code.

Some work done without permit is safe and will never present any issues. However, if a homeowner decides to, for example, upgrade a foundation, a city inspector may spot the unwarranted room within the property. At that point, he or she can ask to see plans and permits for that room, ultimately requesting that you legalize it.

And if you decide to buy a house with an unwarranted unit and rent out that unit, you may run into problems if a neighbor decides to notify the city. In that case, inspectors would visit your property and potentially request that you dismantle the illegal unit. (Or legalize the property by creating two units, which may not be structurally possible.)

When evaluating properties, it’s important to check building permit histories to ensure that they match up to the details of the home. For example, if a kitchen was obviously remodeled sometime after the construction date of the property and there are no permits on file, it’d be a good idea to have your inspector flag any potential code items he or she sees. Of course, you can’t tear open walls, but some things are apparent code violators to a trained eye.

It’s challenging to put dollar amounts on unwarranted work. Instead, make sure you use the right comparative sales in your evaluation. For example, a “room down” or “bonus room” in a two-bedroom single-family home isn’t technically an official bedroom. (The dollar amount may be the difference between two- and three-bedroom homes values.) In this case, the best comps would be those with similar layouts (not three bedrooms).

In all cases, I don’t recommend omitting inspections—especially when unwarranted work is disclosed or suspected.

Posted in Home Buyer Tips, Homeowner Tips | Tagged: , , | 2 Comments »

What You Get For: $1.5M

Posted by insidesfre on January 11, 2010

The $1.5M price point is actually quite popular in San Francisco, so today we take a look at what you can get for your money: a view home in Noe Valley, former firehouse in Hayes Valley, and what appears to be a wannabe presidential residence on the West Portal/St. Francis Wood border.

Let’s start with 744 Duncan at Diamond, in Noe Valley:

Last sold in 2003 for $1,050,000, the sellers are now looking for $1,495,000 for their 2,000-square foot, 4BR/3BA home with a nice yard and views. There are three bedrooms on the top floor, and this master suite with killer bay and city views:

Next up is 229 Oak at Octavia:

This 2500-square foot home was built in 1913 and originally housed a commercial fire dispatch headquarters. It now has four bedrooms and three bathrooms on two levels, complete with a loft office space, garden and two-car parking. The property sits on the same lot as a newly constructed luxury home on Lily that just came on the market for $1.9M, and the lot will be officially split at close of escrow.

229 Oak was first listed last year at a whopping $1,760,000 and was relisted in December at its current price. The location on Oak between Octavia and Gough isn’t too bad; 101-bound, cross-city commuters will turn right on Octavia, so the 200 block isn’t as heavily trafficked. But it is fairly busy. The property is currently in contract, awaiting its buyers’ close of escrow on their own home. A great house for those who’d love a lower level workspace.

Finally, we have 1550 Portola at San Leandro. If Obama and his family are looking for a San Francisco place, this is probably a good White House substitute (at least, in theory):

The 5BR/4BA home was built in 1920 and boasts 5,000 square feet. There’s a lot of mahagony woodwork, period detail—and wallpaper. Lots of wallpaper.

I couldn’t leave out a photo of my favorite bathroom. Michelle Obama would have a field day redecorating:

The home was first listed in June 2009 for $1,595,000, and then reduced last September to its current price. Portola is another busy street, but for a buyer who doesn’t mind constant traffic outside the door and who’d appreciate the close proximity to the West Portal retail area, this home will do the trick.

Posted in Hayes Valley, Miraloma/West Portal, Noe/Eureka Valley, What You Get For... | Tagged: , , , | 1 Comment »

The Best Neighborhoods for Dog Owners in San Francisco

Posted by insidesfre on January 8, 2010

San Francisco is one of the more dog-friendly cities in the country, and many of its neighborhoods offer ideal environments for dogs and their owners.

I’m a dog owner myself, and frequently meet clients looking for a home in a neighborhood that will provide what we all need for us and our pets—ideally, proximity to open space, dog-friendly cafes and shops, and a community of dog owners who support each other and their ‘hood.

So here are my picks for the best dog-owner neighborhoods in San Francisco:
1. Bernal Heights. It’s got a great retail area on Cortland Avenue, with plenty of shops and cafes, including Bernal Beast pet shop. But most notably, Fit Bernal Fit opened in November 2009—a gym that invites “Bernal locals and their dogs to join us to exercise, socialize and engage in a more healthful, energetic and stress-free lifestyle.” If that’s not enough, there’s Bernal Hill itself, which has trails and off-leash areas, as well as Holly Park. The weather is superior in Bernal, so when you head out for a walk in the late afternoon, don’t expect to encounter much fog.

2. Inner Sunset. The weather may not be as desirable, but the Inner Sunset has Golden Gate Park at its doorstep. Yes, you have to keep your dog on a leash, but at least there’s a lot for your dog to smell and see. (My terriers love the gopher holes.) There’s also the Irving Street corridor, which is a great place to stop for coffee or lunch. Le Video—one of the few bonafide video stores left in the city—also lets you bring in your dog. For pet care, there’s All Animals Emergency on 9th Avenue, and Irving Pet Hospital at 15th Avenue.

3. Noe Valley. Ok, so I’m a bit biased on this one because I live here. But if there are two requirements for living in Noe, it’s that you need a dog or a kid. I’ve picked a leash over a stroller, and have plenty of company. There are two dog runs—one on 30th Street, and one up the hill at 27th and Diamond. There’s the Noe Valley Pet Company ladies at Church and Cesar Chavez, and 24th Street is the place to go if you’re in search of a dog water bowl outside a store. Le Zinc on 24th and Castro lets you bring your dog into its rear outdoor patio through a back entrance. And don’t overlook the Friends of Upper Noe Dog Owners Group, which makes sure the 30th Street dog run stays in shape.

4. Parkside. Though the Parkside doesn’t have the concentrated retail areas of the aforementioned neighborhoods, it’s near some pretty vital open spaces. There’s Stern Grove, an excellent dog-walking area. But the canine epicenter lies over at Fort Funston, a short drive away. The area even has its own Fort Funston Dog Walker (FFDW) organization that works to preserve off-leash areas and good dog ownership practices. The Parkside is also blocks away from Ocean Beach and the Great Highway, which are great places to bring your dog. The streets in the Parkside are nice and wide, so there’s plenty of sidewalk room, too.

5. NoPa. The North Panhandle neighborhood suits dog owners well, as the architecture allows for spacious flats. It’s a little more low-key than the busier Haight area, which can be stimulation overload for dogs if you decide to troll along Haight Street itself. The Panhandle is a good dog destination, as it’s a sizeable open space for walks. Nearby Alamo Square is a dog party in its own right (though you have to contend with the tourists gawking at the Painted Ladies). And check out the Dog Owners of Alamo Square and Great NoPa Yahoo group list for local resources, as well as the North of Panhandle Neighborhood Association for more general resources. There are a lot of great shops and restaurants scattered throughout NoPa to which you can walk your dog, particularly along Divisadero. Don’t forget about two key shops: Osso & Co., the pet store on Broderick, where you can pick up specialty items as well as everyday pet products, and Cats & Dogs Pet Supply, a more mom-and-pop store/groomer on Divisadero.

6. Mission Bay. Far less established a neighborhood than the others, Mission Bay is your best bet if you want to live downtown and own a dog. The Mission Creek Dog Park is up and running, which also lets you meet the other pioneer Mission Bay dwellers and their pets. If you get bored with Mission Creek, you can simply walk your dog up and down the Embarcadero, which has wide streets and provides nice Bay views. Mission Bay’s park system is still developing, and I’m betting the neighborhood will build its own very organized dog community over time.

Posted in Bernal/Excelsior, Cole Valley, Haight/NoPa, Home Buyer Tips, Noe/Eureka Valley, SF Tidbits | Tagged: | 5 Comments »

Lenders Held to Good-Faith Estimate

Posted by insidesfre on January 7, 2010

Lenders now have to stand by their initial good-faith estimate that they provide borrowers, according to the Department of Housing and Urban Development (HUD).

Closing costs are given to loan applicants up front, but these good-faith estimates can sometimes change when the loan is finalized. However, as of January 1st, lenders will be forbidden from increasing some charges at the closing table and will be limited to a 10% increase on other fees. If the costs of such services such as title insurance or credit reports turn out to be substantially more than initially indicated on the good-faith estimate, the lender will have to east the difference.

Costs that lenders can’t increase at all include origination charges, discount points (after the interest rate is locked), and transfer taxes. The costs that can’t increase more than 10% are required services selected by the lender, as well as title search and lender’s title insurance (if the lender selects the title company or the borrower chooses a title company suggested by the lender).

Sounds good, right? The twist is that lenders are widely expected to raise fees and overestimate some others to make up for potential increases.

So review your good-faith estimate from the start, and retain a copy of it so you can compare it when you receive your estimated closing statement from the title company. I always request the latter document prior to my clients signing loan documents, so they can review the fees and make sure everything is in line with what they’ve been told. Given this new regulation, it’s more important than ever to keep an eye on closing costs.

Posted in Home Buyer Tips | Tagged: , , | Leave a Comment »

13 New Condos Coming at 15th & Dolores

Posted by insidesfre on January 5, 2010

The long-vacant lot and its adjacent historical structure at the corner of 15th and Dolores are finally scheduled to become high-end residential housing later this year (barring one more upcoming “formality hearing”):

The property went through Planning review channels last Fall, and is now slated to host a mix of one- and two-bedroom condos (plus one three bedroom). Development on the land has been battled by neighbors for years, but it looks like the time has come for residential housing to take hold.

The existing structure—originally built in 1904 as a parsonage, which is a house provided for the pastor of a church—will be transformed into three condos, and the lot will ultimately see four stories of ten additional units. Parking will be available for all condos.

The developer is experienced in creating “unique, boutique residences,” according to one of the listing agents for the project. So I’m guessing pricing will be closer to the $1M mark and above for these units. (Luxury properties in established neighborhoods are generally selling at $1,000/sq foot.)

Smaller buildings with luxury finishes seem to be the trend these days, as those buyers willing and able to pay higher prices tend to prefer smaller buildings in well-established neighborhoods with limited development opportunity. And this one is in an extremely walkable, central location in Mission Dolores and straddling the Castro, Duboce Triangle, and Hayes Valley areas.

I’ll keep you posted on this project as it unfolds.

Posted in Hayes Valley, Mission/Potrero, New Developments, Noe/Eureka Valley | Tagged: , | Leave a Comment »

SF Market on Track in New Year

Posted by insidesfre on January 4, 2010

It’s been a challenging time for all real estate markets, and San Francisco felt its own pain throughout most of 2009. But buyers and sellers were doing substantial business in the fourth quarter of last year, pointing to a definite housing recovery in the city.

The last quarter certainly looked better in terms of volume. A total of 564 single-family homes and 485 condos were reported sold by the Multiple Listing Service (MLS). Contrast that to same time period in 2008, when only 464 houses and 357 condos sold.

But sales price averages pointed to a definite trend in our housing market– higher single-family home prices, and lower ones for condos. The single-family home average in the last quarter was $992,146, up from $919,305 in the same period of 2008. However, the average condo sold for $756,052 vs. $795,690. This is probably because condo inventory is routinely higher, and there’s more for buyers to choose from.

Multiple-offer scenarios slowly returned late last year, particularly for single-family homes. Shortly before Christmas, my buyers were involved with two multiple-offer situations, one of which had 13 offers. I’m expecting more of the same in 2010 as buyers rush to take advantage of the still-low interest rates and federal tax credit. There’s also a renewed confidence in the Bay Area job market, which has encouraged buyers to make their purchases now.

Foreign buyers stepped into the San Francisco market in a big way last year. Reports from within my company pointed to a rising trend in buyers from France, Asia, and Canada taking advantage of favorable exchange rates and softer property prices. Indeed, I was contacted later in the year by buyers from England and Japan who are interested in evaluating their prospects for a second home in downtown San Francisco. Our city’s international appeal fortunately continues to shine.

It’s likely that as the stock and job markets steadily improve, San Francisco real estate will hold its own. Yes, loans will still be difficult to obtain for those who can’t meet lenders’ stricter requirements. But in desirable, walkable neighborhoods, don’t expect to see prices slip much lower in 2010. I think our market “bottom” has come and gone.

Posted in Market Snapshots | Tagged: , | 3 Comments »

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