antooliva, Home Buyer in San Francisco, CA

Why 1301 condos are selling below asking price?

Asked by antooliva, San Francisco, CA Tue Oct 23, 2012

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Antooliva,

After doing a little digging, it looks like that address had a sale back in 1996 that was for $92M. There seems to be two partners in the development; Fillmore Center Associates and Laramar Group. No individual listings appear with that address though so it may be under a different street address for individual condos, etc.

I hope this is helpful.

Gabriel
0 votes Thank Flag Link Thu Oct 25, 2012
Thanks!
Flag Thu Oct 25, 2012
Thanks Jed. My question is related to an address. I find several units in the building at 1301 Fillmore street are sold below asking price. I wonder why. Is there something wrong with this building or location?
0 votes Thank Flag Link Tue Oct 23, 2012
Not sure if the number 1301 is the number of units sold below asking or an address but I want to offer a fact that my research shows is pretty consistent in the San Francisco market. (I can't say if this is typical in other markets because I have never seen this data analysis anywhere else)
Pulling sold data from our MLS I've documented that forty something percent of properties sell below the original asking price, another forty something percent selling above the original asking price. The most surprising outcome for me was the consistently small percentage, usually single digit, of properties that sell at the original asking price.
The fact is that there are two prices involved in the sale of real estate. There is what I call the "marketing price" and then there is the "sale price". With a dynamic market, like SF has, it is virtually impossible to predict what the buyers will pay for a specific property. When prices are rising because there are more buyers than inventory it is always possible that any single buyer might shoot the moon with an offer. When the market is in decline, like it was when confidence was low and money not really available, who can tell if a buyer would be found for the place?
One other fact that turned up in the above research; if a property sells below original asking, it takes an additional fifty days to sell. Yup, fifty days. The average DOM for units sold below asking was in the eighties and over asking was in the thirties.
0 votes Thank Flag Link Tue Oct 23, 2012
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
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