The selling patterns in San Francisco continue to be “list low, sell high.” Sellers looking for buyers to pay well over asking for their properties were in luck over the past two months.
Buyers looking to make a purchase before the end of the year need to be aware of the house and condo overbidding hot spots. These are the neighborhoods where you can expect to pay 20% or more for properties, based on sales in August and September 2014.
Single-Family Homes
Average Citywide Overbid: 9.73%
Where Buyers are Paying 20%+: Be prepared to overbid in the Central/Outer Richmond; Golden Gate Heights; Parkside; Inner Sunset; Sunnyside; Noe Valley, Glen Park, and Bernal.
Your Main Competition: Contractors looking for fixers, deep-pocketed buyers who will handle their own renovations. Witness 4171 24th Street (above) in Noe Valley. The 2BR/1BA, 1200 square foot fixer Victorian was listed at $1.2M and was purchased in a cash transaction for $1,850,000. There was also 276 Ripley in Bernal Heights, a total fixer with one bedroom listed for $895,000; that sold for $1,450,000 in cash and I’m sure we’ll see the renovated version return in a few months for $2M+.
Condos
Average Citywide Overbid: 6%
Where Buyers are Paying 20%+: Noe and Eureka Valleys, Mission Dolores, Hayes Valley, Lower Pac Heights
Your Main Competition: Buyers looking for units with all the amenities (e.g., parking, in-unit washer/dryer, larger square footage, period detail, outdoor space) in highly desirable locations. There were no real standout overbids in the condo market, which means things could be cooling off a bit. But if you’re focused on the neighborhoods near popular retail strips, shuttle stops and public transportation, expect to pay well over the list price.