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Hows About $415,000 More Than You Were Asking? Will That Be Enough?

Just when you think you’ve seen it all, along comes a property on Clayton Street in the Haight Ashbury district (might as well call it Cole Valley too) that drops the jaw just a little bit more.

For all practical purposes, this property was really nice. It had a wonderful upper two level unit with views, deck, hot tub, and charm. It had a great lower level unit that could easily fetch $5500 in rent, or be annexed to the upper unit as a large single family (if memory serves me correctly), and it had a nice little cottage in the rear of the property that I didn’t even see, but was rented for I think $1750/month. It had all the charm, all the parking, all the amenities, and all the trappings of a great Cole Valley – Haight property, including rental income.
My clients and I decided to throw our name into the hat at their asking price of $1,650,000, knowing it was a long shot, but worth a try. We were one of 12 offers, not even in the top nine, and low and behold 777-779 Clayton closed escrow last week for a staggering $2,065,0000, or $415,000 over asking price! Happy Holidays To That Seller (Flash Gordon…no joke)!!!
We can debate the fair market value, whether it was under priced, and all that another day. For now, I ask any of you to show me a market in the world (Not Silicon Valley, not Marin, not Berkeley) where 12 buyers show up for one property, at least 9 of them offer more than the seller is asking, and the “winner” ultimately gives the seller $415,000 more than what was suggested as a fair price to purchase the property.
Perhaps it’s time to bring back the Maximum Overbid Of the Week, and consider switching from a listing service to an auction service for selling San Francisco real estate?
777-779 Clayton details [MLS]
More Cole Valley Stories [theFrontSteps]
More Haight Ashbury Stories [theFrontSteps]


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alexclark

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6 thoughts on “Hows About $415,000 More Than You Were Asking? Will That Be Enough?”

  • mikey woodz

    December 3, 2012 at 3:27 pm

    Who wouldnt buy a 3 unit in cole valley in good shape and size fo 1.65m, intentionally underpriced by a lame agent

    Reply
  • Craig

    December 3, 2012 at 4:37 pm

    Not so sure mikey. I recently saw a really nice 2 unit over at Ashbury and Grove (across the panhandle) that went for around 1.65M. And that one would be much easier to condo convert. Didn’t realize that the Haight commanded such a premium over nopa. I would personally have preferred the nopa one, but…

    Reply
  • mikey woodz

    December 4, 2012 at 2:39 pm

    Yea I saw that one and in fact own a building around the corner from it. COle Valley definitely commands a premium over the panhandle, plus this cole one was a lot more authentic than that one on Grove

    Reply
  • Financial Samurai

    December 11, 2012 at 1:25 am

    Seems like a fair market price to be if rent is really that high. The buyer got a steal!

    Reply
  • Financial Samurai

    December 11, 2012 at 1:27 am

    Let’s see:
    $5,500 rent
    $1,700 rent
    $6,000 rent for upper unit
    $13,200 a MONTH = 7.7% rental yield vs. the 10-year yield at 1.65% and a mortgage rate at under 4% for sure.
    Seriously, what a great buy!
    Sam

    Reply
    • thefrontsteps

      December 20, 2012 at 9:25 am

      Indeed, but still crazy, crazy, crazy.

      Reply

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