SOLD! | 1720-24 Larkin | Russian Hill Multi-Unit | $5,200,000

When in doubt, write an offer, tie it up, do your research, and hopefully it all turns out. That’s how we got this amazing development opportunity at 1720 Larkin, in Russian Hill, and how we got it WAY below asking. Originally listed “off market” for $6,200,000, I threw this out to a few developers I know, most of whom assumed it was over-priced, and had no potential.


Their loss…we originally submitted a “low-ball” offer just to begin the dialogue, and to our surprise, the sellers didn’t simply tell us to get lost. After a couple verbal rounds of negotiating, we put our intentions in writing, got a counter, countered them, and got in contract with 30 days to figure out what we could do with this beast, if anything, and if we could get a loan. As it turns out…one can do a lot, and our lender agreed!

So stay tuned for the transformation, and relish with me in the fact that we got this property WAY below list price, fought our way through lender headaches, and just closed for $5,200,000 (listed on MLS for $5,500,000, which you’ll note is different than the off market $6.2M list price).

Congratulations to my clients (the buyers) and to all of the sellers. Thank you also to the listing agents who stuck with us, and didn’t lose their sh*t when we kept having to delay the close. I promised we’d get there, and we did.

Onward!

SOLD | 1143-45 Jackson | It’s a Good Story…

I had the pleasure of representing some repeat clients on their purchase of this well located and highly sought after two unit property at 1143-45 Jackson for $2,150,000. We had to go to battle, for sure, but in the end we beat out 11 other buyers (including one higher) to seal the deal. The story on this is very interesting…


My clients really wanted this property, despite having just recently (2 weeks prior) purchased another property in the neighborhood. Listed for $1,688,000, it was anybody’s guess where 1143-45 Jackson would go, so we guessed $1,850,000 as our original offer (cash, 7 day close, no contingencies) would “get us a seat at the table”. Well…it almost got us kicked out of the club as we were the LOWEST of 11! Laughable, but not laughable. Many agents would stop there. Not me.

I practically begged to be involved in a multiple counter, and advised the listing agents we could go higher, but simply didn’t know where to begin. So we got the counter from sellers at $2,150,000…and it was ours, because we had excellent terms and a well put together offer package. BUT! We countered at $2,125,000, which was a risky move and could backfire. It backfired. The sellers said they were accepting a higher offer than ours, because we didn’t go where we needed to go. We were devastated.

Then we got the call…the other buyer was M.I.A., and so we could again have the property at $2,150,000 if we could get it signed within 30 minutes. While cooking Salmon on the barbecue, and managing my starving children, I was able to sit down to Docusign (our electronic signature system) between grill checks, some flames, and occasional shouts of “the fish is on fire dad!” to get the counter sent to my buyer, signed, and back to the seller within 10 minutes. Fish off the grill. White wine and milk poured. Napkins in laps. Mahlzeit.

They put the other buyer in “backup” position, in case we faltered. We closed 7 days later.

That’s probably more story than you needed to hear, but that’s how you get it done for your buyers in this market.

Congratulations!

For Sale | 754 18th Ave | Central Richmond Edwardian | $1,095,000

Exquisite Edwardian 2 bedroom plus sunroom (easily used as 3rd bedroom or office), 1.5 bath luxury residence has it all in a location ideal for outdoor enthusiasts, or urban dwellers alike.


This Central Richmond flat features beautiful hardwood floors, formal living room w/ decorative fireplace, formal dining room, updated kitchen, in unit Washer & Dryer, tons of natural light, additional storage, double paned windows, yard (with plum and lemon trees), views, and parking. Half block to Golden Gate Park, and 5 minutes to Ocean Beach. Easy access to Marin, Napa, Peninsula & Downtown. Multiple public transit options, and front row seats to everything Golden Gate Park has to offer. You will be the envy of all your cycling, running, dog-walking, museum-going, and music-loving friends.

Property Details:
$1,095,000
Built 1923
2 Unit Building/HOA
2 bedrooms
1.5 bath
Sunroom with views
1399 Square Feet (per tax records)
1 car parking (option for 2)
Open/Updated Kitchen
Hardwood Floors
Fireplace
Radiator Heat
Shared Yard
Dishwasher
Washer & Dryer
Gas Range
Additional Storage
Shared Extra Room off of garage
Excellent Location
Low $250/HOA Dues (Includes: Insurance, Water, Garbage, Common area utilities)

Showing Schedule:
Saturdays & Sundays 1-4pm Open House
Easter Sunday 2-4pm
Private Showings Upon Request

Exclusively listed by:
Alexander Clark
Keller Williams Luxury Realty International
theFrontSteps.com
alexclark@gmail.com
415-254-5351

SOLD | McCormick Queen Anne Flats | Alamo Square | $3,200,000

Congratulations to my wonderful clients on their (way below list price) purchase of this amazing property known as the McCormick Queen Anne Flats just a stone’s throw away from Alamo Square Park.

Built in 1894 by architect Absalom J. Barnett, a resident of the Western Addition, for William and Margaret McCormick in the hope that their daughters would live close to them when they married, this magnificent storybook Queen Anne Victorian is 6,000+ square feet, and loaded with Victorian details.

What an amazing property! Congratulations to everyone involved. My client’s lender was outstanding, the other agent was easy to work with, which all made for a very smooth and ideal transaction. Thank you everyone for your professionalism, and calm.

Originally listed for $4,150,000, my clients scored it for $3,200,000.

Buyer represented by Alexander Clark
theFrontSteps
Keller Williams Luxury Realty

For details about this transaction, please do not hesitate to contact me. In the market to sell your trophy property? I can help…I seem to be attracting the Queen Annes lately.

179 Carl, Cole Valley Queen Anne Sold [theFrontSteps]

Mission To Millennium | SF’s Top 10 Underbids of the Week

The top underbid of the week goes to an Outer Mission single family home that (dare we say) needs a bit of work. Listed for $699,000 and sold for $575,000 after 62 days on the market. According to our data from last week, single family homes continue to take up the majority of the top 10 underbid slots: 50% single family homes, 30% multi-units, and 20% condo.

As we get into the winter months, we are seeing luxury homes cooling down but affordable homes remaining competitive. One other notable Underbid is this wonderful Millennium Tower residence with million dollar water and landmark views on both sides of the Bay. Listed at $4.588M and sold for $4.18M after 122 days. Still a win, IMO.

As for the rest, here you go:

Address BR/BA/Units List Price Sold Price Underbid
2220 Cayuga Avenue 1/1/1 $699,000 $575,000 -17.74 %
161-165 Cook Street 2-4 Units $2,395,000 $2,150,000 -10.23 %
2287 16th Avenue 4/2/2 $1,388,000 $1,250,000 -9.94 %
18 Kronquist Court 4/2/1 $1,899,000 $1,725,000 -9.16 %
301 Mission Street #49D 2/3/2 $4,588,000 $4,180,000 -8.89 %
78 Gladys Street 3/2/0 $1,195,000 $1,100,000 -7.95 %
1437 47th Avenue 1437A 2-4 Units $1,275,000 $1,175,000 -7.84 %
2829 Pierce Street 2831 2-4 Units $2,970,000 $2,750,000 -7.41 %
3260 Baker Street 3/2/2 $2,999,000 $2,800,000 -6.64 %
2040 Franklin Street #506 0/1/1 $575,000 $540,000 -6.09 %

As is always the case, if you have any questions about the market, your home, homes in your area, or real estate referrals around the world, I am here to help. Just give me a shout by choosing any of the “contact” options all over this site.

Maximum Overbid Of The Week | “Corpse House” Wins | HazMat Suit Sold Separately

It’s the house that had not only a hoarder, but a mummified corpse father of said hoarder that takes top honors this week. Originally listed for $928,000, 152 4th Ave buyers jumped at this house, put it in contract for $1,029,500, and sent it to court for overbids. With the hoarding daughter hospitalized and hopefully getting help, 152 4th Ave now has new owners and a final sales price —$1,560,000—HazMat suit sold separately.

Address BR/BA/Units DOM List Price Sold Price Overbid
152 4th Avenue 2/2.00/N/A 38 $1,029,500 $1,560,000 51.53%
175 Boutwell Street 1/1.00/N/A 14 $399,000 $561,000 40.60%
1440 15th Avenue 4/2.00/N/A 18 $998,000 $1,350,000 35.27%
648 Felton 4/1.00/N/A 14 $749,000 $1,008,000 34.58%
160 Boutwell Street 1/1.00/N/A 15 $399,950 $535,000 33.77%
37 Miguel Street 2/1.00/2 13 $899,000 $1,200,000 33.48%
3974 18th Street 2/1.50/ 13 $1,249,000 $1,650,000 32.11%
25 Sierra Street 3/2.50/505 12 $1,299,000 $1,701,078 30.95%
178 Holladay Avenue 2/2.00/N/A 12 $995,000 $1,300,000 30.65%
119 Madrid Street 3/2.50/N/A 18 $799,000 $1,038,000 29.91%

In case you track these, we changed the feed and it now pulls weekly top 10, rather than past two weeks. So check back every Friday.

Have a great weekend!

152 4th Ave, San Francisco [Property Detail Page]
New Listings, Recent Sales, Top 20 Overbids, Top 20 Underbids, Stalefish [the Goods]
Corpse Found Inside Hoarder’s Home [SocketSite]
Creepy Lake District “Mummy House” Returns for $928k [Curbed]
1793 Sanchez St, For Sale, Glen Park [theFrontSteps]

Maximum Overbid Of The Week| 80% Over Off Lake

21827thWhat more can you say…the marketing remarks for 218 27th Ave say it all, “Contractors Special with Bay View from front steps. 25X120 lot; occupancy classification R3 per 3R Report; Zoning District per 3R Report RM1; This is an AS IS sale. Bring your contractors and hard hats. Laundry and 3rd bedroom is not warranted.” Listed $895,000 sold for $1,612,000 or 80% over asking. Not bad. Not bad at all.

Address BR/BA/Units DOM List Price Sold Price Overbid
218 27th Avenue 3/1.00/N/A 12 $895,000 $1,612,000 80.11%
676 Capp Street 3/1.50/N/A 12 $1,300,000 $2,300,000 76.92%
27 Cutler Avenue 3/1.00/N/A 20 $569,000 $880,000 54.66%
1400 35th Avenue 1402 2-4 Units 14 $799,000 $1,220,000 52.69%
2219 25th Avenue 2/1.00/N/A 13 $949,000 $1,380,000 45.42%
850 35th Avenue 2/1.50/N/A 38 $950,000 $1,380,000 45.26%
2080 14th Avenue 3/1.00/N/A 13 $899,000 $1,302,080 44.84%
12 Carson Street 3/2.00/N/A 10 $1,649,000 $2,260,000 37.05%
51 Somerset Street 3/1.00/N/A 10 $849,000 $1,160,000 36.63%
136 Bradford Street 4/2.00/N/A 43 $899,000 $1,225,000 36.26%

I share this information so you, the buyer and seller, can get used to the idea that San Francisco real estate is not normal. I also share it for myself and my colleagues to support our claim when we go on listing presentations that there is no such thing as “you priced it too low”. You cannot price too low in San Francisco. You can definitely price too high though.

04-alex-clark-portrait-citybg-2x3If you’re thinking about selling, give me a shout.
Alexander Clark
Paragon Real Estate Group
415-254-5351
alexclark@gmail.com
sfnewsletter.com will be published today around 12pm with updated top 20 Overbids, top 20 Underbids, Stalefish, New Listings, and Recent Sales. You still have time to sign up.

Home Sales by San Francisco District and Price

These charts show the breakdown of San Francisco home sales as reported to the city’s Multiple Listing Service, year to date 2015. We picked this period, because generally speaking prices appreciated again in late winter/ early spring 2015. These analyses are sorted by city districts and neighborhoods by the number of transactions in different sales-price segments. Note that median sales prices will change every time the time period or neighborhoods included in an analysis change.

The first chart below the San Francisco neighborhood map is an overview for the entire city.

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These 2 charts below track San Francisco luxury home sales by price range and neighborhood. Rather arbitrarily, we designate the luxury segment as those condos, co-ops and TICs selling for $1,500,000 or more, and those houses selling for $2,000,000 and above. Considering the appreciation of the market in recent years, we may have to adjust those thresholds soon.

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As always, if you have further questions, just shout.

San Francisco Real Estate Market Mid-Year Report

Home Price Appreciation Rates; Prices, Cost & Affordability;
Dollar per Square Foot; Interest Rates; Sales Price to List Price Ratio

Bay Area Appreciation Rates since 2011
Combined House & Condo Median Sales Prices

BayArea-Median-Price-Increases_2011-2015YTD_by-County

Besides the general economic recovery, there are other factors in different counties affecting home price increases over the past 4 years: 1) the huge decline in distressed property sales in those counties severely affected during the downturn (such as Solano, Contra Costa & Alameda), 2) the dramatic surge in luxury home sales (such as in SF, San Mateo & Marin), 3) increasing luxury condo construction (SF), and 4) the effect of the high-tech boom in employment and wealth, which radiates out from San Francisco and Silicon Valley.

The higher priced counties, led by San Francisco and San Mateo, saw the largest dollar increases in median prices since 2011 – $400,000 to $500,000 – but counties rebounding from the distressed property crisis often experienced the biggest percentage jumps. The city of Oakland, benefiting from both the decline in distressed sales and being the closest, most affordable option to high San Francisco housing prices saw by far the largest percentage increase: 133%.

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San Francisco Appreciation Rates by Neighborhood

Note that median prices within the city are also affected by a variety of factors beyond simple increases in fair market value.

SF House Appreciation Rates in Dollars & Percentages

2011-2015_SF-Median-House-Price-Appreciation_Dollars

2011-2015_SF-Median-House-Price-Percentage-Appreciation

We’re almost positive that we recommended that everyone buy at least one median-priced Pacific Heights mansion in 2011 at the bargain-basement price of $3,225,000. If you had followed this (imaginary) advice, your home would have appreciated by $2.77 million. However, on a pure return on investment basis, you would have done better to snap up a few median-priced houses in the Mission, which appreciated by an incredible 143%. It should be noted that both of these neighborhoods have comparatively few house sales as compared to, say, the Sunset or Bernal Heights. Low supply is often one factor in high appreciation rates.

SF Condo Appreciation Rates in Dollars & Percentages

2011-2015_SF-Median-Condo-Price-Appreciation_Dollars

2011-2015_SF-Median-Condo-Price-Percentage-Appreciation

For condos, Russian Hill led the way in dollar median price appreciation and Yerba Buena was tops in percentage price increase since the bottom of the market in 2011.

Over the past 4 years, houses have appreciated a bit more than condos in the city, 81% to 73%, and that is probably due to the fact that houses are becoming the scarcer commodity: While thousands of new condos are now being built each year, new house construction can usually be counted on 2 or 3 hands.

For prevailing SF median house and condo prices, our interactive map of neighborhood values can be found here:SF Neighborhood Home-Price Map

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Average Dollar per Square Foot Values
by San Francisco Neighborhood

7-15_House_AvgDolSqFt_by-SF-Neighborhood

7-15_Condo_AvgDolSqFt_by-SF-Neighborhood

Increasing average dollar per square foot values have been breaking records in neighborhoods throughout San Francisco for the last 2 years. Some of the surge in condo values is explained by the many recently built luxury condo projects – which have been selling at premium dollar per square foot prices – that have been sprouting up around the city.

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San Francisco Luxury Home Sales

Q2-2015_SF-Luxury-Home-Sales_by_Qtr

Sales of higher-end houses and condos have been soaring in the city and hit by far their highest number ever in the second quarter. Big jumps in expensive home sales are an important factor behind increases in the overall median sales price.

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Appreciation, Cost & Affordability

Short-Term Median Price Appreciation (since 2012)

Median_SFD-Condo_by-Qtr_Short-term

Long-Term Median Price Appreciation (since 1993)

Median-Price_Sep-SF-SFD-Cndo_1993-Present_V2

Inflation & Interested Rate-Adjusted Housing Cost (since 1993)

1993-Present_SF-PITI-Cost_Inflation-Adjusted

The short-term and long-term appreciation charts above are self-explanatory. The Home Cost Trends chart reflects a very approximate calculation of monthly home payment costs (principal, interest, property tax and insurance) adjusted for inflation – i.e. in 1993 dollars – using annual median house sales prices, average annual 30-year interest rates, and assuming a 20% downpayment. The average annual compounding CPI inflation rate fluctuated, but averaged approximately 2.4% over the period, and average annual mortgage rates fluctuated from 8.4% to 3.7% (see chart further below), which had a huge impact on financing costs.

Adjusting for inflation and interest rate changes means that though the median sales price is now far above that of 2007, the monthly housing cost is still a little bit below then. This isn’t a perfect apples-to-apples comparison because it doesn’t take into account that the amount of the 20% downpayment increased significantly over the time period. Still, since ongoing cost is typically an important factor for homebuyers (at least those getting financing), this affords another angle on our market.

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Mortgage Interest Rate Trends

1993-Present_30-Year_Interest-Rates_Comp

Over the last 4 years, the big decline in interest rates has largely subsidized the increase in home prices.

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Price Reductions, Sales Prices to List Prices,
and Days on Market

Q2-15_SP-OP_DOM_by-Price-Reduction

In the 2nd quarter, the vast majority of SF home sales sold without prior price reductions; these sold very quickly, at an astounding average of 14.5% over the original list price – clear indications of a white-hot market. For the past 4 years, spring has been by far the most frenzied selling season of the year, and the market usually cools in summer.

There you have it.

Recent Transactions [Alexander Clark]