Author: Tim Murray, Vice President and Regional Manager of the firms’ San Francisco and Sonoma offices.
Buyers in San Francisco need to be patient and work with an outstanding real estate agent to get into escrow these days. From entry level one bedroom condominiums to luxury properties above $4 million – cash is king unless the buyer is work with an institutional lender and is willing to offer substantially over the list price. A recent example on entry level is a condominium listed for just under $500,000 which sold for $640,000. The offer was accepted without an appraisal contingency and with a 30-day close of escrow.
In the mid-range of the market, a single family home near Noe Valley, the hot spot for Silicon Valley buyers who choose to live in San Francisco, was listed for $899,000 and settled at $940,000. The deal fell through with the buyers getting cold feet. However, the property was re-listed a week later and sold for $1 million.
On the luxury end of the market, a cash offer was submitted for about $3 million on a home listed for $2,495,000 with no contingencies and a six-day close. The buyer was not successful in getting the property, as the seller accepted a higher offer. Cash is not always king and doesn’t guarantee success. Price is trumping cash right now – even with a loan contingency. If a buyer is willing to offer substantially over the list price, they can be successful.
This is our modern day version of Tales of the City. A convergence of wealth from Asia and wealth from Silicon Valley has created a seller’s market par excellence. Invariably, more homes will be coming on the market in San Francisco due to the rapid increase in prices. Buyers will be able to purchase in the lowest interest environment in our lifetimes which will continue to fuel sales.
Luckily, many of our agents at Alain Pinel Realtors are able to get buyers into properties even in this extremely competitive market in San Francisco. Buyers should not feel discouraged even if they have missed out on a few good opportunities.
Sellers are also contacting us to get market evaluations of their properties. Since prices have risen substantially in the last year, many sellers are planning to put their properties on the market this summer or early autumn 2013.
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Tim Murray manages the San Francisco and Sonoma offices of Alain Pinel Realtors, is responsible for day-to-day operations at both locations, and is charged with growing the firm in the City and North Bay. Previously, he was President and CEO of Pacific Union GMAC Real Estate from September 2003 to early 2007. In addition to his passion for luxury real estate and international marketing, Tim is also very committed to public service and local philanthropy.