A reader asks about 463 Nevada, a “mid-century modern home completely remodeled in 2001 with great light and views. Perfect home for people who appreciate design and architecture from Dwell Magazine and Design Within Reach.”-agent remarks
“Hi,
i’ve always believed that you can’t lose in SF RE, especially if you wait out the lows because let’s be honest, the lows here, if they even happen, don’t happen for too long, right? Well, my view was challenged recently after seeing a beautiful house for sale at 463 Nevada St in Bernal Heights.
It was completely gutted and remodeled in 2001. While the colors were too bright for my taste (and i think probably most people’s taste) the house itself is a gem with the only work needed to it is to tame those bright colors with a nice coat of paint. Nice hardwood floors, top of the line appliances, 3bd/2ba and a garage..a rarity in SF! :-)
Listed at 950K , I thought the price was steep but then learned that it just sold for 775K. How is that possible?
It gets better. It was listed as 900 something sq feet per tax record [Editor’s note: Indeed, 980] but agent claimed it as 1250 which is a somewhat substantial discrepancy.”
We won’t even get into the agent square footage discrepancy as we have absolutely no idea about the property, we’re assuming some remodeling done without permit, and/or tax records are not updated. Who knows. As for the home not selling for $950,000…over-priced. Important to remember, regardless of where properties are priced, the market will always make the comp. Even if the home was listed at $599,000 and it sold for $775,000, the market would set that price. Sounds like a fair price for that home. The price could also have been set by the seller. We really don’t know, unless the agent cares to share some knowledge. Or our readers and Stammtisch care to chime in.
–Reduced [theFrontSteps]
–463 Nevada St [MLS]
This house was purchased in 2000 for $365,000. While the home did have an extensive remodel, it’s safe to say it wasn’t a 400K remodel – far from it. The owners of this property made money – to the tune of 400K in 7 years. Obviously they spent money on the remodel – but they made money.
What’s interesting is the pricing strategy. Initial price of $950,000 is reduced to $875 in 9 days and the property goes into contract 13 days later for $775. I agree with Alex – the market will determine the appropriate price for the property – that said, the decision to list a property at $950 and cut it by 8 percent 9 days — pretty interesting decision. I’d venture to say had the property been listed for $775 from the onset, it would have been bid up to the 800K range.
One would wonder if this wasn’t a seller that HAD to sell for some reason.
$775,000 for 980 sqft = $790/sqft. Is this considered good value in Bernal Heights?
Bernal is not a neighborhood I would ever apply price per square foot to. So many of the single family homes have undergone significant renovations that the tax records don’t show. Pretty typical to have 2+car garages converted into beds / baths / family rooms, etc. Based on the style of the remodel it would not shock me to find out the city didn’t update the tax record and the subject house is over 1200 sqft with a price per sqft of about $630.
IS $630/sqft good for this neighborhood? I’m not familiar with Bernal Heights at all. Thanks.
630 is below the average price per sqft for single family homes in 2007.
There are homes fixers that sell for well under $630 per sqft and some incredible houses on the north slope of bernal that have crossed the $800 per sqft mark. In short – just below the average – I’d call it a smart buy – it’s not the best deal in San Francisco – but i suspect both buyer and seller walked away pleased.
I saw this house and it’s not even close to being 1200 sq feet. While it was nicely renovated it was very small. The pictures are deceiving. I would say the 900 sq foot tax record info is close to if not completely accurate.
That’s really the shitty side of Bernal: projects and the freeway
I’d rather just move to the East Bay that live there
lol, zig is so down on bernal. he always posts on the CL housing forum about how crappy bernal is and how the east bay is better….obviously not everyone agrees with zig given the prices in bernal. even at 900 sq feet this house was expensive and goes to show how strong the market is in bernal.
If anybody bought a wooden shack in 2000 and sold in 2007, they made money. You’d have to be a complete idiot not to make money during the biggest housing bubble in the history of this country and it all started in 1997. These folks did not “make $400k” as Greg claims. They made $400k minus $60k in realtor commissions, minus the cost of the work that they put into the house. I have no idea if it was $50k in renovations or $200k but it doesn’t add anything to the conversation to overinflate the big win here. Spread that gain over seven years and factor in the boom, and it’s not that impressive. I think this house does a better job of reflecting the softness of late, rather than strength. This house probably would have gone for $900k last summer.
Dave – please don’t put words in my mouth – I said:
This house was purchased in 2000 for $365,000. While the home did have an extensive remodel, it’s safe to say it wasn’t a 400K remodel – far from it. The owners of this property made money – to the tune of 400K in 7 years. Obviously they spent money on the remodel – but they made money.
If we’re gonna get after facts — then lets do just that. These folks spent at MOST, 46K in real estate commissions — this is assuming they paid their Realtor 6% – which isn’t typical — more than likely it was closer to 38K – a far cry from 60K.
This house would not have sold for 900K last year. It’s location is in south Bernal and it gets a good deal of noise from highway 280 – some other recent South Bernal sales have boosted the price in the area.
I’m not certain I see a softness in the Bernal single family house market — perhaps you have inight I don’t have, but from where I’m sitting on a daily basis – the Bernal single family house market is very strong.
I never intended to over inflate the return – a 57K return per year over 7 years – let’s say they spent 40K in commissions and 100K in a remodel. That’s a 260K return – perhaps they added additional equity through 7 years of mortgage payments. I don’t care how you cut it – 260K in 7 years is a nice return.
let’s not forget to subtract 7 years of mortgage payments, taxes, fees, inflation of about 4% a year, and maintenance and repairs above and beyond the remodel.
I am not saying these people didn’t do well and/or make money, but the picture is not as rosy as it seems when you really crunch the numbers.
I happened to go to the OH for this particular home. It was nice, but not anywhere close to a high end remodel as the realtor’s ad claims. Plus the owner supposedly did all the work himself so I’m sure the remodel was done very economically. And did I mention the place is TINY!
The mortgage payments he had would have been spent on rent if he was renting a home in SF so that’s a moot point. While renting is safe, you never make any money off it. This guy was fortunate enough to have money to invest, took a chance, and made a couple hundred thousand as a result. From where I’m sitting it’s a very rosey picture indeed!
I never understand why people would spend close to $1000/sqft in Bernal H. I mean just check out the house listed in district 7 on MLS. Much better areas and selling also for less than $1000/ sqft.
Kevin – your sentiments are exactly what makes this city great — we have a small city but TONS of quality neighborhoods in that small space. For some people, District 7 is the ONLY place they would consider living in the city. For some, it’s Potrero Hill or Bernal Ht’s, others Noe – etc.
The people who live and own property in Bernal Ht’s tend to love the neighborhood, the weather, the proximity to 101 / 280 and the “small town” feel the neighborhood retains. The price per square foot of the home in question is not typical of the entire neighborhood — in fact it is significantly higher. Be leary of judging the entire Bernal market based on this property.