How to spot a Real Estate Deal in San Francisco
How do you know if you are getting a good deal on the home you're buying?
With the San Francisco Real Estate Market being as competitive as it is, sometimes it can be very hard to spot a good deal when you see one. Over the last few years we've seen home prices increase by double-digit percentages and multiple offers on everything from fixer uppers to multi-million dollar mansions.
In a time where it's very easy to look at all of the newest listings and gorgeous pictures online, some websites want to make you think that it's easy to buy a home online by yourself, to save money on commissions. For most people a home purchase will be one of the largest assets they acquire in their lifetime and this could be a mistake.
Step one, work with a local San Francisco real estate agent. If you are looking to buy a home in Pacific Heights, work with a local realtor that specializes in Pacific Heights real estate. By working with a local realtor, they will be able to provide you the best data and the comparable properties that have sold in the neighborhood within the last few months. Review the data with your Realtor and see how your home compares to the sold properties. Does your property have a view? Does your property have additional parking? Does your property get more natural light? Does your property have a lot of traffic? By reviewing the comps, we can gauge the home’s true value.
Are you looking to write an offer below the asking price?
In some cases properties are listed too high in price. Some sellers are just looking to test the market to see if they can get a very high price. They might not actually need to sell and their motivation lies truly in making the most money possible.
When we see homes sitting on the market for 30, 60, 90 days, this is a good indicator that the home is overpriced. In these cases, I feel it's normal and okay to write an offer below the asking price, only after reviewing the comparable property sales to see where the value is.
As of November 2017, it's unfortunate, but realistic for San Francisco Buyers to expect to compete with multiple offers on properties listed under 30 days. In most of these cases, you should expect to pay at or above the listing price. The best deals are found usually with patience and looking for homes that have been sitting on the market for longer than 30 days. Check here to see my list of San Francisco fixer-upper homes currently listed on the market.