San Francisco Home Sellers – It’s Time to Get Serious!
So I was just surfing the San Francisco real estate blog-o-sphere after a long hard day of looking at properties that are currently on the market – and I noticed an interesting trend. I noticed that there are properties on the market right now that have had offer dates come and go – and they haven’t received offers.
Now – you’ve heard me say that I think now is a great time to buy San Francisco real estate. If you check out my last few posts about mortgage rates or the rising cost of SF Rents, you’ll get my drift. And I’m sticking to that point of view.
And I just read a post that further solidified my belief that NOW is a great time to buy! I read on the Daily Pundit that not only are buyers out there making low-ball offers on properties, but when sellers try to counter those low-ball offers, buyers just walk the hell away. I’m hearing the same things from agents that I work with also. I’m also seeing that with some of my own clients.
Why? Because smart buyers know that RIGHT NOW – they will be able to find a decent property at a decent price and they don’t need to get into a bidding war to get it!
Don’t get me wrong – there are still rockstar properties out there that will get a ton of offers and go way over asking. But (and I am surprised about this) I am seeing properties that a year ago would have commanded at least 5 offers not getting a single one come offer date.Â
In fact, I recently told a client of mine that I was convinced that a San Francisco condo she was interested in would sell for at or a little over asking, and it ended up selling for below asking – $16K under asking to be exact. OK – so we’re not talking $100K, but shoot – $16K can get you most of the furniture you need for a 2BR condo if you know where to shop! Oh – and yes – I just admitted in public that I was wrong. It doesn’t happen often though folks – so don’t get used to it! 
So what’s my point? The title of this post has something to do with sellers and I haven’t mentioned them yet. So here it goes…
Sellers – it’s time to get realistic about selling your home in San Francisco.Â
You might have a great place, but unless you have a rockstar property, you likely will not get 10 offers. Right now – you just need to get one good solid offer that doesn’t have shaky financing or some other quirk. One good offer is all it takes to get your place sold.
I’ve mentioned many times that I don’t take listings that I don’t think will sell, and I’ve had to turn down many sellers in the past because their expectations of what the market was going to bring them just weren’t realistic.Â
Some have delusions that their property appreciated $100K or more from a year ago for no reason. Others are convinced that the improvements they made added hundreds of thousands of dollars in value, when the improvements they made actually took away from the value. Others still think they are living in 2004 or 2005 when you stuck a for sale sign in your yard and your property sold before it even hit the MLS. I’m not saying that’s every seller – but I’ve met a lot of those, turned them down and their properties are STILL on the market to this very day.Â
A personal note to the San Francisco Home Seller - if you want to sell your home, you need to get realistic about what someone will be willing to pay for it. And if you get a good strong offer, don’t look a gifthorse in the mouth, be happy with the bird in the hand, and know when to hold them and when to fold them – If the cliches didn’t get my point across, let me put it another way - take the strong offer, because even though it might not be what YOU thought your home was worth, but it is what the market thinks it’s worth.
Is it a good time to buy? Yes – if you’re a serious buyer looking for a property at a fair price.
Is it a good time to sell? Yes – if you’re realistic about the market and don’t expect a miracle.
People are buying and selling properties all over San Francisco. If you are trying to buy or sell and you can’t seem to make it happen, it’s time to re-examine your expectations. Feel free to contact me and I’ll be happy to help you set some realistic goals.Â
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Funny – there was a property that Curbed SF mentioned at 402 Sanchez that was originally listed at $1,350,000 and is now reduced to $1,234,050 after months and months on the market. The seller bought it for $1,200,000 and tried to sell it just a year later for $150K more. It’s yet another example of seller expectations being unrealistic. Thanks for the reminder that even more important than “location, location, location” is “PRICE, PRICE, PRICE!”