126 Sylvan continued….. Received 6 Offers

The living room at 126 Sylvan, San Francisco, California.

Earlier I had posted that the West of Twin Peaks property at 126 Sylvan had 20 disclosure packages out. I followed up with the listing agent and honed in on the actual number. It was 18. So, out of 18 disclosure packages the property generated 6 offers. Not bad for today – or any day for that matter – not the ol’ 1 for 1 ratio we experienced at the height. Today’s pent-up demand is driven by needs first and foremost from a lack of movement over the last 18 months.

I’ll continue watching for more indicators across the City. And…keep you posted.

All the Best,

Lance

415-793-6140

Sunday Open House Traffic Recap and Offers Follow Up

Architectural Stair Element at 70 Valley Street, San Francisco

Our listings in Noe Valley were all open today between 1 and 4 pm and 70 Valley generated very heavy traffic. Listed for $1,250,000 this home is a condo by name only. I sold it to its owners about 15 years ago and encouraged them as they talked about development opportunities. With the help of a savvy architect, they’ve constructed a beautiful one bedroom unit that opens out into the garden with large doors so that the wall disappears between the living and outdoor spaces. Upstairs with what was ‘the house’ they added a second floor, opened up the floor plan and created a contemporary living area with a thoughtfully designed and placed staircase (one of the most attractive I’ve seen). The open today had an estimated crowd of 75 through today. I’ll keep you posted on sale progress.

The Open Living Room at 622 27th Street, San Francisco

Our listings at 622 27th Street, Contemporary Downtown View Home for $2,229,000, and 946 Elizabeth, a New Noe Valley Traditional View Home for $2,499,000, had steady traffic with talk of follow up for private showings this week. Both homes are attracting attention and buyers seem serious when viewing.

4033 26th Street, San Francisco

We’re also representing a buyer for the Vanguard Properties listing at 4033 26th Street, a newly completed 4 bedroom home asking $2,595,000. This week we’re completing inspections.

The market in Noe Valley continues to show strength. We’ll keep you posted on updates and numbers as they come available.

Working hard to keep you connected.

All the Best,

Lance

415-793-6140

New Construction and Property Inspections

I’m currently representing a buyer who is buying a new Noe Valley home. New in the sense of ‘new’ construction. To look at this lovely residence, one might think, ‘its new and signed off by the City, why do I need to spend money on inspections?” It is exactly that reason that inspections are needed.

Property inspections come in waves. First, we call in a ‘general’ inspector. Which we did in this case. He went through the property and has identified areas that ‘need further’ inspection and/or are sub-par for the size of home. In this instance, the on-demand hot water heater is not enough for this size property – it needs two so the flow of hot water is constant and not interrupted with multiple faucets flowing.

Secondly, he’s identified a patio that doesn’t drain the way he would expect and has advised my buyer to get a drainage specialist out. It’s these issues, large and small, that you would probably expect in an older home but that do occur in new construction as well. So take the time and get it inspected. It’ll be the best $500 you ever spent and may save you many times over.

Working hard to keep you connected………

All the Best,

Lance

415-793-6140

Heard on the Street: Brokers’ Tour Recap

418 Liberty, San Francisco

The market is active. That sentence seems to be able to stand on its own legs these days. The house I reported on in an earlier post at 418 Liberty asking $2,395,000 in Dolores Heights that received 5 offers reportedly sold at a price at or near $2,600,000! The house needs a complete remodel and the views are off the back but with a reconfiguration and complete rebuild you’ll have a stellar place.

126 Sylvan Drive, San Francisco

I also want to focus on the ‘under $1million’ price range West of Twin Peaks specifically in that pocket of homes off Sloat near Stern Grove. The house at 126 Sylvan asking $899,000 – a 3/2/2 – has 20 disclosure packages out ! That is 2-0, twenty. The buyers in that area have been sitting on their hands for the last 18months and now they’ve all decided to buy at the same time. Go figure. Where is contrarian thinking. It continues to support my theory that in San Francisco at ‘almost every moment’ the seller controls the market.

455 Crestlake Drive, San Francisco

A new listing at 455 Crestlake Drive has come on at $949,000 and is receiving heightened attention too. We’ll watch how these both play out.

Working hard to keep you connected..

Lance

415-793-6140

Statistics are In: Luxury Home Market Inventory is Increasing Along with Sales and Per-Square-Foot Price

Luxury Home Inventory Shows Increase to Pre-Holiday Level

The statistics are out from February and looking at luxury homes in all of District 5 (Noe Valley, Buena Vista, Castro, Twin Peaks, Cole Valley, Mission Dolores, Ashbury Heights, et. al.) the real trend is showing up following the out-take of the holidays. For homes of $1.9million and above, the inventory level is returning to the pre-holiday high. There are a number of new listings that have come on the market since the beginning of March and some I know of that still haven’t shown up yet that will take this inventory level even higher. The good news is that the market has improved considerably since last year and there is selection for buyers to look at. We’ve seen, as I’ve noted in earlier postings, that the market is moving with offers coming in quickly for nice properties.

Luxury Homes in District 5 Show Per-Square-Foot Increase Through February 2010

The other bright lining seems to be an increase in the per-square-foot sales price. This one will take another month or so to really bare itself as a truism otherwise it’s a one-off one time statistical blip.

For Sale vs. Sold Statistics for Luxury Homes in District 5 of San Francisco

 

Days on Market Sales Numbers for San Francisco's Luxury Homes in District 5

 

Working to keep you current….

All the Best,

Lance

415-793-6140

Heard on the Street: Brokers’ Tour Recap

 

900 Clayton, San Francisco, California

Yesterday was Brokers’ Tour and the market in San Francisco’s more desirable districts appears very strong. The strongest seems to be Noe Valley/Castro/Upper Market and related areas. 900 Clayton asking $2,239,000 was first shown on Sunday’s open house and by last night had 2 offers and was ratified. The house has an interesting history. The sellers bought a new home and moved to Sonoma in 2008. This house went on the market the day Lehman Brothers fell apart and was quickly withdrawn. The sellers thereby waiting (to their benefit) to put it back on the market once the economy had regained its footing.

Today was the sales meeting at my office and agents reported heavy Sunday open house traffic throughout this district.  The inventory has gone up. Yesterday, there were at least 9 new homes in the $1.2million+ category. This should give buyers a selection of properties to see this coming weekend. And, we’ll measure the results.

I should have access to February’s statistics tomorrow and will post those but it seems things are pointing up at this stage.

I’ll keep you posted….

Lance

415-793-6140

The Luxury Marketing Council of San Francisco Hosts Presentation of the Annual Survey of Affluence and Wealth in America

I recently attended the Luxury Marketing Council of San Francisco’s event hosted by Gaul Searson showroom in the Design Center. There the Harrison Group presented their Annual Survey of Affluence and Wealth in America and summarized highlights from their recently published book, The New Elite…Inside the Minds of the Truly Wealthy.

It was an extremely informative presentation which I captured some of for your viewing. I hope you enjoy it.

San Francisco’s Noe Valley Luxury Homes Show Demand with Multiple Offers

418 Liberty Street, San Francisco

The house at 418 Liberty in the desirable Dolores Heights neighborhood hit the market at $2,395,000 and really needs a full interior remodel but due to the desirability of the location, views, overall size and relatively good condition, it garnered 5 offers (4 were all cash, I was told).

Noe Valley’s location, weather and overall desirability continue to push it to the top of the City’s list for home buyers. The buyers I’m encountering in the $2million+ price range are comprised of a majority of folks from out of the area. I would say North side families head the list followed by folks moving into San Francisco for the first time or returning.

If you’re not familiar with Noe Valley, check it out on Nabewise. com or better yet spend an afternoon along 24th Street or at one of the local parks. And if you’d like some first hand information, give me a call.

All the Best,

Lance

415-793-6140

Sunday Open House Attendance Poll: Print Advertising Appears Dead

I polled all attendees to my open house today and the results are continuing to run fairly consistently: print advertising appears dead. I did have one person in two weeks say they saw the newspaper ad but the largest numbers are coming in with their agents or told by their agents (30%); online ads (25%); signs (25%); neighbors (10%) and then those invited by me (10%).

This continually speaks to how the public receives and uses information and where sellers should make sure they’re present. The old school history in me pulls me toward print but even when you pick up one of the free-bees like ‘The Real Estate Times of San Francisco’ it’s a ghost of what it was in its hey-day.

So the next time you’re searching for real estate, I know you’ll start ‘on-line’….just like me.

All the Best,

Lance

415-793-6140

The True Measure of a Home Buyer’s ‘Deal’

I recently met with a young couple who called on one of my listings. I met them one evening to show the house and heard their situation. They were out to look at ‘everything’ and were ‘on their own’ without an agent relying on what they could locate on the internet. They stated that their motivation was driven by the fact that the wife’s sister had bought a house in Marin for $800,000 below asking by representing herself and they wanted the same great ‘deal’.

465 Hoffman

My immediate thought regarding her sister’s great deal was that she actually paid ‘market’ rate or above but ‘thought’ she got a great deal. Let’s look at the facts as presented. If the house her sister had bought had been on the market for months and hadn’t sold and then the sister made what she ‘thought’ was a low ball offer and the seller took it – then the house actually sold for market. In many instances, several I know of here in San Francisco, specific homes that have been listed have dropped their respective prices by that much or more before they sold. If her sister bought it ‘off market’ she may actually have paid a couple hundred thousand more than the $1million off that should have occurred because it wasn’t market tested. 465 Hoffman in Noe Valley started out last year at $3.9million and was only lowered to $3million this month when it finally sold. Anyone who had made an offer while it was ‘off market’ over the Christmas holidays, let’s say at $3.4million, would have thought they’d made the ‘deal’ of a lifetime but actually paid $400,000 too much.

Secondly, the belief that you’ll get a better deal as a buyer by working with the listing agent runs counter to the actual mechanics of the transaction. Without your own ‘representation’, the seller will more than likely – in my 20 years of experience – take the same price that they would even if you had your own agent ( because remember the seller is tied to the sales price the majority of the time) and pocket the increase due to any reduced commission with the listing agent. The buyer has just lost their best resource, their own representative in the transaction. Would you do your own surgery? No, you’d rely on an expert with countless hours of experience, history in the field and connections within the industry. These are the intangibles that buyers often discount but can gain hugely from with the right agent (these provide good measuring sticks when looking for an agent of your own).

Just yesterday (see the previous) posting, I had called on the 15th Avenue house for my clients. The listing agent said that they had received 5 offers and were in counter and were going to make a decision the next day. I said that the house was still in play and I wanted to show my buyers that evening so they would be able to make an offer should they decide to move forward. Because I have experience with the listing agent, she agreed and understood that I was being an aggressive advocate for my buyers. She gave me some limited information on the situation however in discussing it with my business partner, Dan Marshall, we discovered he had been in conversation with an agent that was one of the five offers so then I had the complete picture for my buyers and now knew the counter price which was right on the nose for what I had told my buyers my best guess was at price, $900,000. This is an example of what a buyer can gain from the ‘intangibles’ of an experienced agent with countless hours of experience and connections within the industry.

418 Liberty, San Francisco

While the buyers were touring my listing describing how they were on their own and relying on whatever they could come up with on Google and wanted to see everything, these thoughts of connections and representation where going through my head. They had no idea – because they didn’t have their own tied in representative – that at that very moment a new listing was being launched within the neighborhood at an evening reception at 418 Liberty because it hadn’t formally been listed. 418 Liberty priced at $2.395million went into contract in less than a week so chances are they didn’t see it. Again, they lost out on knowing all the nuances of a neighborhood or area that don’t show up on the internet.

In closing, my best advice is to make sure you’ve accurately measured ‘the deal’ and make sure you have the best representation.

‘Til Next Time,

Lance

415-793-6140