Foreclosure in South Beach>Question Details

Eli, Home Buyer in San Francisco, CA

I really like 260 King 613, does this place worse 552k or its posible to get for 500k??????

Asked by Eli, San Francisco, CA Mon Jan 14, 2008

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8
Eli,
I would tend to agree with the other agents that an offer of 500k probably would not be accepted. That being said, there is a lot of inventory in the SOMA area and especially in the Beacon. These high levels of inventory combined with the fact that this particular unit does not have the same upgrades will give you an advantage when negotiating. Also, there is currently a two bedroom in the Beacon that is listed at a similar price per sq. ft. as the unit you are looking at which should further strengthen your position.
Web Reference: http://gregorygarver.com
1 vote Thank Flag Link Tue Jan 15, 2008
The only way you will know is to try. It might be a waste of time and your agent may say so but as the principal you can requst the offer to be made. In any transaction it is up to you how much you think it's worth to you and then the seller can decide what to take for the property.
This is not the forum for this type of question because all you'll get is opinions and if you are serious about entering negotations with the seller why play your hand in public.
1 vote Thank Flag Link Tue Jan 15, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
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This REO is already priced $26,000 below any other unit in the Beacon complex and at $679.24 per square foot it's competitively listed compared to what's on the market and what's been sold recently. More than 10% off their asking is a pretty deep haircut that I doubt would be seriously considered. I do think they would entertain an offer within 97% of their asking.
1 vote Thank Flag Link Tue Jan 15, 2008
Some information courtesy of Peter Brunton.

The bank owned-1 bedroom you
were looking at is pretty fairly priced. The recent
comps at the Beacon show that homes have sold for
approx. $768 per sq ft. while this one is listed at
$679 per sq. ft. However, most of the the other homes
sold at the Beacon have upgrades whether it be
panoramic views, hardwood floors, bosh appliances, or
private patios.

I would say that a fair price would be in the 533-545k
range due to the fact that the inventory is SOMA down
by the ballpark is high and that there is 15 units
available in the Beacon alone. Homes at the Beacon are
currently listed at around $768 per sq ft., but they
have also been on the market for over 60 days on
average. Also, there is a 2 bedroom listed at 799k
which is approx. 657 per sq. ft. An offer of 533k for
the 1 bedroom would be $655 per sq ft. and while this
2 bedroom might be an outlier, you should still be
able offer around this price per sq ft. for the 1
bedroom.

I am not familiar with any 2 bedroom bank
owned/foreclosures at the Beacon, but there might be
some in the area. Are you specifically looking there
or just in certain other parts of SOMA? Also, people
generally think that bank owned/foreclosures are great
deals, but to be honest, most bank owned properties
are marketed by realtors and close to market price.
The 2 bedroom listed at the beacon for 799k is
actually a much better deal. Finding a property for
below market price is really about finding an
individual owner who is looking to sell quickly or had
to make a dramatic price reduction.
0 votes Thank Flag Link Tue Jan 15, 2008
Thanks for all the thumbs up, it's great having so many fans!
0 votes Thank Flag Link Tue Jan 15, 2008
Hi Eli,

I wanted to add to Melanie's information, in case you don't know what an REO is. An REO is a "Real Estate Owned" property, which means the property has gone back to the original mortgage lender on the property. Typically the lender is trying to maximize its return when they sell an REO property directly. They want to sell quickly in order to not tie up their money in capital reserves they are required to set aside for a foreclosed property, and 2nd, the management of these properties isn't their core business, therefore a headache for them to until it is sold.

So as Melanie said, they are EAGER to sell, but they also have to hold their losses to a minimum. Good luck!

-- Kevin
0 votes Thank Flag Link Tue Jan 15, 2008
Thats a pretty good answer there Gregory. You give that much insight on all the questions. Also Eli is a Realtor making an offer on your behalf. If so best bet ask them to try to find some reasons for the price reduction, comparable sales, work needed etc. Then make the offer its only possible if you try.

Good Luck
0 votes Thank Flag Link Mon Jan 14, 2008
Sorry, just had to be the first to answer this one. Eli, call me.
0 votes Thank Flag Link Mon Jan 14, 2008
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