BFD Price Reductions

A post wherin I look at price reductions that seem to be pointless.

1. Courtesy of SF Schtuff, 1001 California St., #3 is a super lux condo in the old Hitchcockian San Francisco splendor. (MLS gallery offers house porn to die for, here.)

The original price here was $7,250,000. Now it’s $6,950,000. Indeed, one could argue a $300K price break is nothing to sneeze at. But really, the person who can afford the new price could also afford the old price, especially since this home includes an HOA of $5886 per month. So, $300,000? Big  ****ing deal. The monthly payments are still going to top the GNP of certain third world countries.

Here’s another reduction I don’t think makes any difference. 2421 Clement St. This is a 10 unit building, “fully rented,” originally priced at $1,435,888. More than 50 days later, it’s reduced to $1,398,000.

In this case,  it’s not so much the amount of the reduction. I just wonder who would ever want to buy a 10-unit building in SF when every other day a law here makes being a landlord a bigger headache than it already was. In fact, this Examiner article highlights the dubious joys of landlords who are currently suing the city to block such laws. Good luck.

So I wonder, in the world of real estate, if price reductions aren’t sometimes just not that much of an incentive after all.

—————

Photo of 1001 California, #3 via listing agent Betty Brachman, Brachman Group.

4 thoughts on “BFD Price Reductions”

  1. Hey all, is any reader on here a landlord? Is it really as bad as all I hear? I am thinking of trying to leverage a tenant as income to buy a 2 unit building (1 empty, 1 occupied). I’m not sure what I’m getting into.

  2. Hi Delia,
    I’m a tenant myself and know a lot of laws protect me, not my landlord. Tough city. I’m going to use your post though to make sure someone landlord-y answers you.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s