Rebecca Rook, Real Estate Pro in Danville, CA

Could someone tell me the market conditions in San Francisco, and if people need to over bid to get in?

Asked by Rebecca Rook, Danville, CA Thu Feb 28, 2013

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Oggi Kashi’s answer
It depends. For the best results have you considered teaming up with a local realtor to co-represent your client?

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Web Reference: http://www.oggikashi.com/
1 vote Thank Flag Link Thu Feb 28, 2013
Hi Rebecca--Yes, many properties in San Francisco are experiencing multiple-offer situations. Of course, sellers/listing agents are also pricing homes lower than the actual sales prices they're expecting, so you have to take that into consideration.

Here are two blog posts I've written recently that sum up the current SF market:
Seller's Market Continues in San Francisco
http://www.insidesfre.com/sellers-market-continues-in-san-fr…

Cash Sales All the Rage
http://www.insidesfre.com/cash-sales-all-the-rage-in-san-fra…

Cheers,
Eileen
Web Reference: http://www.insidesfre.com
0 votes Thank Flag Link Thu May 9, 2013
Just to give you some perspective from an actual SF homeowner and investor, the SF market currently is completely out of whack.

Case in point: very recent small Sunset fixer down the street with serious foundation problems went on market at 525k. Hordes of people at open houses - ran out of flyers each time. My contractor estimated cost to fix foundation and redo upstairs completely (really needed it) to run in the neighborhood of 150 -200k. Ok, we were thinking IF house sells at asking we are talking after fixing say 700-750k which is low but about what homes in this area go for. Apparently, this home sold for 780k, all CASH. 250k over asking and not to mention the remodeling cost to come. I don't know how many offers but you can imagine there had to be quite a few.

If this is not a sign of a bubble forming, I don't know what is.
0 votes Thank Flag Link Sat Mar 16, 2013
Rebecca,

Our inventory is at exceeding low levels and demand is fueling higher prices. As my colleagues have noted we are definitely in a sellers market.

Here is some insight into our market.
http://www.sfrealtors.com/pdf/realtor_advantage/Market_Focus…

If you need specific building or neighborhood information let me know. It may be beneficial for you to refer your clients to a local agent.

Regards,
Lizete
Web Reference: http://www.LizeteSantos.com
0 votes Thank Flag Link Sat Mar 2, 2013
Fortunately, for sellers, over-bidding is almost a necessity. Unfortunately, for buyers, over-bidding is back. As a Realtor in an area that has a relationship with SFAR, you can go on the MLS and see all the stats from recent sales as compared to other quarters, years etc. If you are unsure of the different areas, I suggest contacting a local Realtor. Otherwise you can check with different Listing Agents whose properties are among the ones your clients are interested in or just watching. They can tell you how many disclosure packages are out and you can then guesstimate how many offers they will get.
Our market is hotter in some areas than in others.

Good luck

Sally
0 votes Thank Flag Link Fri Mar 1, 2013
The market conditions are, simply stated, a very strong sellers market. There is a historic low inventory and steady sales keeping the absorption rate for condos and single-family homes just over one month.
The absorption rate is derived by taking the number of active listings and dividing them by the number of sales last month. The indicator says that if the sales continue at the same rate as last month how long, in months, will the current inventory last.
A sellers market is any number below three. A buyers market is any number above five. In between three, four and five months supply is a balanced market.
When it is a seller's market the advantage is to the sellers. They can get what they want in negotiation because the buyer is under pressure to give to get. In a buyer's market the converse is true, the seller gives ground in negotiation to get the property sold or the buyer goes to a different property.
Seller's markets pressure prices up and buyer's markets pressure prices down. This is supply and demand market forces at work.
0 votes Thank Flag Link Fri Mar 1, 2013
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
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Hi Rebecca,

We are encountering multiple offers for the most desirable properties. The offer dates are set within 7-14 days from the listing date. No contingencies offers are common, especially with so many all cash offers.

We have a lot of stats and information over here and we can help.

Good luck,

Alina

Alina Aeby-Broker Associate
Pacific Union International
http://www.bestsfhomes.com
415.744.4844
0 votes Thank Flag Link Thu Feb 28, 2013
Rebecca,
In a hot seller's market there is no replacing the best agent you can get. You need someone who will do the research on the property, the sellers and their agent to give you the best strategy to win. Winning a competitive bid is not just outbidding the other buyers in price. Sometimes other factors can make the difference and a great agent knows how to find out and structure your offer to stand out above the rest. Best of luck.
0 votes Thank Flag Link Thu Feb 28, 2013
Rebecca,

Depending on the property, SF is very competitive right now. At our brokerage (Zephyr) we're seeing about two-thirds of properties selling over asking with multiple offers. One way to gauge this is to notice how many listings have set "offer dates", which encourages competition.

If you have particular market segments in mind, let me know, and I can give you more specifics.
0 votes Thank Flag Link Thu Feb 28, 2013
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