McGuire Neighbors

Gobbledygook—Seven Ways Buyers Sabotage Themselves

cynthia@cynthiacummins.com (Cynthia Cummins) — Wed, 01 Feb 2012 17:34:05 -0800

I generally shy away from blogging about practical tips or market prognostications, but having this week heard several first-time buyers’ plans to shoot themselves in the proverbial feet, I thought I’d offer just a smidgen of advice. Here are seven wrong ways of thinking that make it hard for a so-called buyer to actually buy.

“All my agent cares about is making a sale"

It’s possible that you are indeed working with an agent who only wants to make a sale (see #3 and #4). However, the smart agent knows that ensuring a client’s happiness is the key to continued success. A satisfied buyer brings return and referral business to the agent who cares.
“I’m going to work with a family friend"

There’s a teeny chance the family friend is well qualified to represent you, but more likely the friend is either:
a.) Part-time
b.) Semi-retired
c.) Completely unfamiliar with SF inventory, contracts, customs, or pricing
d.) Responding to the wishes of the buyer’s family, not the buyer themselves

Saving money is usually the true motivation for this choice, but the kickback of commission seldom compensates for the poor service and bad advice that results.
“I don’t need an agent, I’ll just look on my own and have a listing agent or family-friend help me”

We’re not shopping at Costco people—although that’s not a bad idea?—I’m fresh out of paper towels, vodka and Listerine! Your agent is your ally. The seller pays your agent’s commission. Why wouldn’t you avail yourself of free expertise from a professional whose sole purpose is to please you? (Also see #2 and #4)
“I’ll have the listing agent write my offer”

You’re planning to go to the person who has a fiduciary obligation to get the very best result for the seller and have them represent you? You can buy anything currently listed for sale in your price range. The listing agent has a vested interest in selling this one property. Ever read Aesop’s fables? I’m sure there’s one that applies to this scenario.
“I’m in no hurry, I don’t have to buy now”

Then why exactly are you searching the internet, going to open houses, getting preapproved for financing, asking for disclosure packages, contemplating writing an offer, writing an offer, writing a counter offer? We know you don’t have to buy now. We can’t and won’t wrestle you to the ground and force you to pay cash for a place you don’t want at a price you can’t abide. Something is scaring you or you wouldn’t be going on about how you don’t have to buy now. What’s really on your mind?
“I’m going to work with a high-profile agent, not a rookie”

It’s true that most high-profile agents are hardworking and devoted to their clients. That’s how they achieved their current status and success; it’s why and how they just sold a $14M mansion in Pacific Heights. However, despite their best intentions, Top Producers may not have a whole lot of time to offer first-time buyers. The hungry, relatively new agent may be a better bet.
“My agent wants me to pay more so they’ll earn a higher commission”

First, revisit #1: Agent Motivation. Second, consider that the individual agent’s take-home commission is going to be somewhere in the vicinity of 2% of the purchase price. On a $1,000 price increase that’s $20 for the agent. Yet, that same $1,000 could determine whether or not the seller accepts an offer.

To conclude, if you’re a new buyer who doesn’t have an agent, and if much of what I’ve written reads like gobbledygook, there’s a fair chance that my writing is indeed gobbledygook. But there’s also a fair chance that you should begin shopping for an agent BEFORE you start shopping for real estate.

This Week's 10 Most Viewed Properties on McGuire.com

website@mcguire.com (McGuire ) — Tue, 31 Jan 2012 11:41:07 -0800

The hunt for a new home varies in shape, size, price range, amenities, as well as neighborhoods; it’s really up the individual buyer to figure out what they’re looking for and explore the properties which catch their eye. That being said, some listings tend to have more luck than others—for a number of reasons—and so to shed some light, here are the top 10 properties viewed on mcguire.com for this week.

1.) 2701 Broadway St., Pacific Heights

Please contact: Neal Ward & Gael Bruno

2.) 175 Bluxome St. #223, SOMA

Please contact: Jeanne Zimmermann

3.) Union St., Cow Hollow

Please contact: Barbara Callan and Robert Callan Jr.

4.) 923 Creston Road, Berkeley

Please contact: Arlene Baxter

5.) 280 Hazel Ave., Mill Valley

Please contact: Lee Weldon

6.) 465 10th St. #303, SOMA

Please contact: Susan Morris

7.) 930 Chestnut St., Russian Hill

Please contact: Ronni Garfield and Darwin Tejada

8.) 4722-4724 19th St., Eureka Valley/Dolores Heights

Please contact: Jeffrey Salgado and Amina Yee

9.) 1 18th Ave., Lake Street

Please contact: Ana T.L. Dierkhising

10.) 1157 Broderick St., Anza Vista

Please contact: Chris Panou

Get the Scoop on San Francisco MLS Changes

cisaacs@mcguire.com (Carole Isaacs) — Fri, 27 Jan 2012 15:14:53 -0800

Beginning January 2012 the San Francisco Multiple Listing Service (MLS) added additional status categories in response to the changes in the current real estate market. In the past once an offer was received and until contingencies were removed, a property was listed in the MLS online simply as Active-Continued. Weeks to months may pass while an offer on a property wades through the approval process of a trust sale, short sale, or foreclosure. The new status categories provide buyers, sellers and agents with more accurate complete information about listing status.

The new categories and their definitions below were provided by the San Francisco Multiple Listing Service:

Active Continued – Short Sale: Accepted offer pending lender approval, additional offers being sought
Active Continued – Release Clause: Accepted offer with a subject to sale seller release clause, additional offers being sought
Active Continued – Show: Accepted offer with buyer contingency provisions such as inspections, accepting back-up offers
Active Continued – Probate: Accepted offer, available to be overbid through the court confirmation process
Temporary Off-Market: The listing contract is still valid, but the property is not being actively marketed. There is no accepted offer.Temp Off-Market listings will not be allowed to be relisted as new.

Why do you need to know about MLS changes and why should you care one way or the other?

Seeing that the status on a property you have been following did not change for some time may have caused you to call your agent and ask what was going on. Information that previously would need a series of phone calls to be exchanged between agents and buyers or sellers is now available online using the new status search categories. Just about every property in San Francisco is different, and it requires many hours of searching online and in person to find just the right home. Chasing down information on homes that are not still accepting offers was time consuming for all concerned. This is especially true in the Spring when as many as 100 or more new properties come on the market each week. The new categories are a great improvement for everyone who uses the MLS. Anything that provides more information and speeds up the search process is a good thing.

The various Active Continued categories are self-explanatory, but the Temp Off the Market category needs more explanation. If for example a property has been listed as Active for a period of time, but is not actively being marketed because work is being done on the property, it is now possible to move the listing to the Temp Off Market category. Buyers will know the property is for sale, but currently not available to show. The agent can add some explanation in the listing information online. Days On Market (DOM) will continue to the count in this category. This is an important factor in the marketing of a property, because DOM and sale price are statistically directly related. The longer a property is on the market the lower the sale price.

Is there any way to stop the count of DOM? Yes, withdraw the listing from the MLS for 30 days. This means the listing agreement must be cancelled. The property listing must be changed to a different status and will be found in the Withdrawn-Cancel category on the MLS. The property may be listed as new after being off the market completely for 30 days. The DOM count will begin from zero.

How does a seller know whether or not to temporarily remove their property from the market, or withdraw the listing altogether? There are pluses and minuses to withdrawing a property from the market altogether. Between Thanksgiving and January this is a popular choice with sellers, because so many buyers are preoccupied with the holidays and take a break from house hunting. However, at other times of the year it is important to review the marketing strategy and plan you have decided on with your agent. If you have questions that have not been answered here, please email or call.

Would you like to try CleanOffer? Help in your search or selling your home? If so, please e-mail me at callingcarole@gmail.com or call my cell 415.608.1267. Find me on Facebook at San Francisco City Living or follow me on Twitter @caroleisaacs and stay up to speed with the best of the city.

San Francisco Parking Tips: Reviewing David LaBau's Finding the Sweet Spot

cisaacs@mcguire.com (Carole Isaacs) — Fri, 20 Jan 2012 14:53:44 -0800

There’s no question that I’m parking obsessed, I admit it freely. Over five years ago, when my compact station wagon died, I bought a Mazda Miata. A major part of my choice was based on the length of the car. Many friends and business associates thought I had gone round the bend, but five years later it is clear I was a visionary ahead of my time. Fast forward to today where Mini’s, Fiats, and Smart Cars are found on just about every street in San Francisco. Today, parking is on the minds of everyone who owns a car in San Francisco. Parking will definitely be part of the equation if you’re interested in buying a home in San Francisco.

Recently I found the book, Finding the Sweet Spot: The Insider’s Guide to Parking in San Francisco, in my office mailbox. I intended to scan the book, but once I got started I found it to be full of useful information.

THE BAD NEWS:
David LaBau includes some disconcerting facts that cannot be ignored. In San Francisco, there are 280,000 unmetered parking spots, 23,000 metered spots and 450,000 registered vehicles. One can only imagine how many out of city vehicles are looking for parking daily. We can include an unknown amount of residential parking spaces into the mix, but the bottom line is there are more cars than parking spots in San Francisco.

THE GOOD NEWS:
This book covers just about everything imaginable: Parking karma, painted curb and sign interpretation, tips and tricks, meters, garages, parking permits and towing. There’s even a section titled, Where is My Car? If you’ve lived here for long you have experienced all of what the book talks about; maybe you already know it all. I do, for the most part, but it’s still nice to find everything I need to know about parking in one compact reference book—which I store in the glove compartment of my small, lovely Miata.

Finding the Sweet Spot was published in 2009 so there have been changes, but the book is a good reference guide and certainly a starting point for almost all things involving parking.
If you’re not in the mood to read the entire book, here are a couple of my personal parking tips:

When in doubt, call the city’s 3-1-1 information line for all parking and city department questions. The operators are consistently knowledgeable and polite.
Never go anywhere in your car without emergency money, preferably a role of quarters. I was standing in front of the Apple store on Chestnut Street when, to my surprise, a prime parking space became available. I popped in my parking card, but the card was somewhat new and didn’t work. Next, I slipped in my credit card but that didn’t work either. I had heard about calling from the meter to pay for time but had not taken the time to figure out this system, and went back to the stone ages of using quarters. The meter now had a few minutes and I decided to carefully try my cards again, this time reading the directions. I found that the parking card needed to be inserted in the meter with a different side up than the credit card and eventually got both my credit card and parking card to work.
The city has a website complete with phone app to aid in finding parking (truthfully, I haven’t found this to be too useful). I’m always amazed that by the time a person gets into their car, another car is already there waiting for them to pull out and so the space rarely ever becomes empty.

After watching this video, I started considering ideas I had never thought about before. If you use the www.sfpark.org website and find there really is no parking available at your destination, the information can be useful in making a decision to choose a different destination, bike, walk or take public transportation and forget driving a car altogether. Also, I learned how to add money/time to a meter remotely.

I find that nothing will cause me to run screaming from my car, or just to throw a quiet fit on the street, faster than finding a parking spot and not being able to feed the meter. Hopefully my frustration is a thing of the past, or at least diminished. Having completed Finding the Sweet Spot I am now armed with enough information to go out on the city streets and park my car! David turned the irritating subject of finding a parking spot into almost an amusing challenge.

The value of a residential parking spot and whether you should consider buying a home without one is another subject. Please read my blog post, Parking…San Francisco Style to find out more on the subject.

Would you like to try CleanOffer? Help in your search or selling your home? If so, please e-mail me at callingcarole@gmail.com or call my cell 415.608.1267. Find me on Facebook at San Francisco City Living or follow me on Twitter @caroleisaacs and stay up to speed with the best of the city.

Jack London’s Paradise: Marin County

sfaccinto@mcguire.com (Sharon M. Faccinto) — Thu, 19 Jan 2012 16:52:51 -0800

Twice last week, I found myself trying to describe to out-of-area clients, the difference between living in Marin versus their other options the East Bay or the Peninsula. This conversation comes up a lot with buyers moving here for jobs in San Francisco, as Marin tends to be a bit pricier and has a smaller supply of homes (i.e. less housing stock) than the East Bay and much of the Peninsula. It can be hard for someone from out of the area to see why.

While I’ve never lived in either of those areas, I have heard very good things and have seen some lovely places too, and so I usually explain to my clients what living in Marin has to offer—an easy commute, excellent public schools, great weather, small towns surrounded by nature, and so much more! But now I have some help from Jack London and he says it a little better. This is from the Marin History Museum (www.marinhistory.org):

London’s Paradise

On Jan. 12, 1876, novelist Jack London was born in San Francisco, and years later he rhapsodized: “Marin County …demonstrates that there is absolutely no comparison between the northern and southern part of California. …of all the parts of the world which I have visited, Northern California, and especially Marin County, is in my opinion, the real paradise of the earth. The Riviera, the sights of Egypt, and the wonders of India are but the works of mankind, while here Mother Nature has lavished her best efforts.”

Click here to see it reprinted in the MarinIJ’s History Watch feature story.

Smack Dab in the Heart of SF

cynthia@cynthiacummins.com (Cynthia Cummins) — Wed, 18 Jan 2012 11:35:14 -0800

For 25 years I’ve been touring houses, condos and buildings in San Francisco, and I’ve come to love particular enclaves. Some are best kept secrets, some are under-valued. Some have features only residents can truly appreciate.

One of these micro-neighborhoods is tucked at the far western border of NOPA. Once upon a time it was known as part of Hayes Valley, and some folks think of it as Inner Richmond or Lone Mountain though it doesn’t squarely fit any of those labels.

Here you’ll find quiet streets without noisy commercial uses and a charming array of late Victorian architecture. The properties feel substantial, with voluminous rooms and rich period detail, all undergirded by thick beams of redwood harvested long ago from the forests north of the bay.

A favorite property I sold early in my career was a home on Shrader St., just behind St. Mary’s Hospital (a surprisingly quiet institutional neighbor). This handsome house was capacious yet warm, with a generous and inviting foyer, four airy bedrooms, and a magical verdant garden. My clients fell in love with it as soon as they hit the top of the entry stairs and caught a peek inside.

I have a new listing, making its market debut in the next month or so, that is similarly enchanting. It feels solid and secure, with its architectural features intact or enhanced by down-to-the-studs, top-of-the-line remodel. The rooms are grand and light, yet there are numerous nooks and crannies for hiding out and resting. It’s unique, in the true definition of that adjective, and doesn’t fit any prototypical mold.

These understated properties, and many others I’ve seen nearby over the years, feel as if they’re hidden in plain sight. They sit on streets that don’t serve as regular cut-through spots for motorists. They’re well maintained and attractive. The result is a sleepy neighborhood with a gentle, relaxed feeling. Yet it’s very convenient and centrally located.

There’s plenty to do. Golden Gate Park, in my opinion one of the most under-utilized urban spaces in the nation, is so close you could roll out of bed and into the park in your pajamas. It’s a haven for walkers, runners, cyclists, dog owners, children or anyone seeking an eyeful of green and a breath of fresh air. Just inside its Stanyan border lies the Conservatory of Flowers, the Fuschia and Dahlia dells, the Golden Gate Park Tennis Club, the San Francisco Lawn Bowling Club, The Children’s Playground (and Carousel), the National AIDS Memorial Grove and plenty of playing fields, walking trails and places where you can just sit and be. (And I’m only talking about the easternmost section of the park!)

Additionally, western NOPA allows for easy access (on foot or by car or MUNI) to many other distinct enclaves for shopping and dining: Haight Ashbury, Laurel Village, Divisadero Street, 9th and Irving, and Clement Street. Check it out on a map. It is right in front of you, smack dab in the heart of San Francisco—an urban oasis offering the best a city can give.

Get Your House Naked and Ready to Sell!

cisaacs@mcguire.com (Carole Isaacs) — Fri, 13 Jan 2012 11:55:54 -0800

Clutter is always on the minds of Realtors, Sellers and Buyers. I don’t know if there has been a scientific study to find out if homes with less clutter sell faster, but I am sure that every Realtor I know would agree this is true. Buyers have come to expect that homes are staged, or at least look staged. The minimalist look is IN.

It is not inexpensive to stage a home and as the days on market before the sale of a home have increased many people have chosen to go on living in their homes while they are on the market. To know that at least twice a week strangers will be walking around your home when your house is on the market is an inconvenience for most people and for others is quite stressful. The need to pick up the house continually after family or roommates can be cut back considerably if you pare down your belongings before your home goes on the market.

A Realtor’s goal is to have buyers looking at the home, not the family photos and personal belongings of the owner. Buyers need to be able to visualize their own couch in the living room, art work on the walls and clothes in the closets. I showed a buyer a home that had been occupied by the seller for 20 years with enormous closets, and a large garage. The buyer made two comments:

The closets are so full; I can’t really tell how big they are.
It looks like the garage can fit two cars, but there is so much stuff here I am not really sure. Besides how can a Pest Inspector inspect the garage—they can barely walk through it. It was time to move on to the next property.

Spring is the busiest time in real estate. Now that the holidays are over and people are in the mood to change gears this is the time to begin spring cleaning and preparing your home for that first Sunday open house. Once you are past the lite weight tidying up, what I think of as the dust bunny stage and ready to move on to something more serious I have some suggestions.

Rent Storage: If you cannot bear to give up your treasures, renting a storage locker for a short time is not expensive compared to missing the opportunity to sell a home. You don’t want a buyer to hesitate making an offer because there is too much clutter. Remember buyers must sign off on parking and storage. I always have a buyer drive their car into the garage to make sure it fits.

THINK GREEN, RECYCLE YOUR BELONGINGS…

Garage Sales: There seems to be no middle ground here. People either think this is fun, or torture. I always gave the proceeds of my garage sales to my children in exchange for their help. They were enthusiastic participants, and felt motivated to sort through their own things looking for toys to sell that they no longer used. My rule was that nothing came back in the house. When the garage sale was over we loaded up the car and donated the left-overs to one of the many charities in town.

Give Things Away: There are several options, some obvious and others not so obvious.

Craigslist: Put up an ad in the free stuff. In a quick look I found TVs, couches and bookcases, and an espresso maker. If you don’t feel like dealing with people, advertisers state in their ads they are leaving the item on the sidewalk at a certain address with the time and date. If your free stuff has any value at all, you will find it gone in an amazingly short time.

Free Signs: Anyone who lives in San Francisco is familiar with the pile of stuff on the sidewalk with a “free sign.” I think of this free stuff as urban mushrooms. Sunday morning on my weekly walk to the Fort Mason Farmer’s Market I saw a large TV and stand on the sidewalk. Passing the same location an hour later on my way home the TV and stand were gone. Yes, I know it is illegal to leave things on the sidewalk. Just because everyone is doing it doesn’t mean it is OK. This method of reducing your belongings must be mentioned, or you would think I don’t know anything about city living.

Give Things to Friends: When I decided to sell my home after 20+ years it became clear that my children had more than enough stuff, and did not want mine. I offered it to friends. When friends visited me I would tell them I was moving and ask them to take something home with them. In fact, they could take as much as they wanted and I would be happy to help them fill up their car. This was a novelty at first, but after a while friends would tell me “My house is full, my garage is full, and I should be getting rid of stuff.”

Donate to Charity: If your priority is to give things away and receive a tax deduction there are many charities to choose from, and some will come to your house to pick up your donations, others require they are dropped off. Both the Goodwill and Salvation Army have drop off sites around town.

AS A LAST RESORT…

Schedule a Junk Pickup: Many items can be picked up by Sunset Scavenger at no cost. For more information call (415) 330-1300. If you have serious debris to remove you may need to rent a debris box.

As you prepare your home to sell keep in mind there is a direct relationship between number of days on market (DOM) and sale price. As days on the market go up, sales prices go down. Reducing clutter and having your home look the best will increase your opportunity for a quick sale at the highest price.

There is no question that preparing a home for sale involves work, but the reward will follow when after the first Sunday Open House and Broker’s Tour your agent tells you that buyers loved your home and you can expect a quick sale.

New Year’s Resolutions for Buyers and Sellers

cisaacs@mcguire.com (Carole Isaacs) — Mon, 09 Jan 2012 13:56:41 -0800

There is no way to get around the fact that buying, or selling a home involves major decisions. It’s time consuming in the best of circumstances, emotionally draining and overwhelming in the worst. A few good New Year’s resolutions are worth considering. When you say to yourself, “there are so many details, I don’t know where to begin,” you can fall back on your New Year’s resolutions to get back on track.

As we know, by February our New Year’s resolutions are more often than not forgotten. If you have ever gone to a gym, like clockwork in January the gym is jammed, and back to normal by the end of February. To do any good a resolution needs to easily integrate into daily life, and improve the quality of life.

As a Realtor, I know that winter is always a slow time in real estate. This is a good time to plan the search for a home, or prepare for the sale of a home when there is no pressure to buy, or sell right away. Keeping this in mind, I have a few suggestions that could take on the form of resolutions if you’re inclined.

DO ONE THING EACH DAY RELATED TO REAL ESTATE: Reading an article, going to an open house, or chatting with friends qualifies as one thing. When you’re first starting on your search most people are hesitant to talk to a Realtor. It’s OK to talk to a Realtor, even if you are just thinking of buying or selling a home. Your relationship with your agent will be long term. Buying or selling a home is not like buying a car, or any other large ticket item. No question is too small. Realtors expect to answer questions. This is a Realtor’s job!

GET RID OF SOMETHING: It’s almost un-American to be a minimalist. Moving is expensive and most people have too much stuff. Think about what you can live without, and lighten your load gradually as you plan your move. Can you live without three different coffee makers? I know what you are thinking, “this is easy for her to say, it isn’t her stuff.” I sold my home of over 20 years about five years ago and I can guarantee I had serious stuff. To my amazement when I told my children I was selling the house, and asked what they wanted my youngest daughter said without missing a beat, “I want the espresso maker.” That was OK, because I still had my old Atomic espresso maker, a glass French press pot, and an old ceramic Melitta drip coffee maker. I actually stored the French press pot for four years. Recently I gave it to a young couple when I found it on their list of wedding gifts. I had used it only once or twice, but couldn’t let go. When I talked to the couple, telling them my story they laughed, and were delighted to accept the coffee pot as a wedding gift. Believe me; I do understand getting rid of stuff is difficult.

TAKE A DEEP BREATH, PATIENCE IS KEY: I had engineer who was quite upset say to me, “my whole life is about order and logic. Nothing about buying a home seems to make sense.” In the Bay Area where so many people work in technology or finance, making all the pieces of buying a home fit together neatly can feel like an impossible task. It is important to keep in mind that buying a home is not like buying commercial property as an investment. You cannot rely exclusively on your analytical mind. Homes in San Francisco have historically been more expensive than most other cities in the world. Of course you want your home to be a good investment, but you need to keep in mind that you are buying a home, and you will be living there. What you get above all else is to live in a home in San Francisco that you own. This is a fantastically special and wonderful thing.

During this whole process it is important to keep in mind that the great thing about buying, or selling a home is that when the deal is done, both buyers and sellers win. Sellers get money, and buyers get a home. By the time 2012 rolls around with patience, I hope you will have found your dream home, or sold your home, and moved on to your next adventure in life.

Salesforce.com, Inc. Signs Major Lease for its Spot in Downtown SF

lsantos@mcguire.com (Lizete Santos) — Mon, 09 Jan 2012 13:13:46 -0800

They’ve done it again—in addition to the 14 acre Mission Bay Campus being built in 2013—it appears Salesforce.com, Inc. needs additional space to house all of its employees and peripherals. The company just signed a $339M lease at 50 Fremont Street for 18 years; the city’s longest term in the last 10 years. The big move is scheduled for this summer. This will certainly be a boon for the neighborhood, adjoining businesses and stimulate growth in our city.

2012: Birth of the New Buyer & Death of the Real Estate "Specialist"

jcomer@mcguire.com (Jamie Comer) — Fri, 06 Jan 2012 17:17:11 -0800

In the old model of real estate sales during the boom years, a seller hired a neighborhood specialist to sell their home. The neighborhood specialist sold many homes in their area, the seller saw their signs, gotten their post cards, and hired them because they felt comfortable with them. Specialists give the SELLER a higher degree of comfort but this is not BUYER based selling. In a buyer’s market, it’s understandable that you would want to hire the more familiar agent. But the goal as a seller shouldn’t be comfort; it’s to attract a buyer! The specialist concept is outdated; when you buy into the specialist concept you are essentially being sold.

One of the most interesting 2011 trends is what I call “The New Buyer,” and we’re seeing a reversal of trend as a function of the buying trends of new buyer. For example, with reduced inventory comes a rise in price, right? Not necessarily. There were fewer sales of single family homes (SFH) in:

District 1 — Richmond, Sea Cliff, Lake Street
District 7 — Pacific Heights, Marina, Cow Hollow, Presidio Heights

Strangely, as inventory diminished in Districts 1/7, so did the price; down 3% and 6% respectively. Usually with scarcity comes higher value so what’s going on here? The new buyer doesn’t want these homes. It’s either too expensive or too far away.

The only district that saw a reduction in sales and a corresponding rise in price was District 6. In District 6 — Lower Pacific Heights, Hayes Valley, Alamo Square, Lone Mountain, North Panhandle (NOPA) — 2010 had 41 SFH sales whereas there were only 26 in 2011. With that decrease in volume, the average sale price jumped from $1.35M to $1.5M, an approximate 11.8% increase.

The new buyer isn’t just buying houses either. Take a stroll through NOPA or Hayes Valley, you will not believe the amount of gentrification that has occurred in retail. Restaurateurs and retailers alike continue to flock to District 6 because commercial leases are less expensive there, filling these neighborhoods with amazing stores and eateries. On the flipside, both Union and Fillmore Street saw an unprecedented 30% vacancy rate in retail during the downturn. Check out my Facebook page to see stores in these areas; they remind me of NYC’s East Village or SoHo in the early ‘80s.

As an alternative, edgier professional fields like the tech sector and social start-ups have gained employment footing, while the longtime traditional employers in San Francisco have lost traction. The more offbeat, unique, and urban neighborhoods continue to attract the buyer pool. Particularly when you consider that the price for a 3BR/2BA SFH in District 6 is roughly the same as a 3BR/2BA condo in Pacific or Presidio Heights. People appear to be favoring asset class over neighborhood. In addition, today’s eligible buyer is different from the one who was buying five years ago; what they value and respond to has simply changed.

This bears itself out when you compare the average number of sales in District 7 condos and TICs to District 6. In the boom years—2002 to 2006—the average number of sales in District 7 was 13% higher than District 6. In the five year period from 2007–2011, District 7 averaged 263 sales to District 6 at 264. No difference. Buyers may be well served to broaden their search and sellers need to make certain when reviewing comparables that they are focusing beyond a direct comparison in their own immediate neighborhood, moreover, they need to make certain their agent has sold properties in several neighborhoods so they can discuss with high specificity the pros and cons of different locations.

Here’s the secret that neighborhood specialists won’t tell you: The buyer doesn’t care, even a little bit, who’s in your home or how many neighborhood homes they’ve sold as long as the buyer gets into the home to see it.

Buyers shop price first, then bedroom/bathroom count, followed by asset class—is it a condo or a TIC?—it now matters less since everything requires 20% down. While a neighborhood is still a guiding element, it’s no longer the frame of the debate. If the person in your home doesn’t have a broad sales history, from various asset classes and neighborhoods, then they cannot make a meaningful argument of why that buyer should chose your home against the others!

Marin Music Scene Looking Forward in 2012 and Looking Back on 2011

rzipkin@mcguire.com () — Fri, 06 Jan 2012 10:40:16 -0800

Looking forward to lively 2012? Great news for Marin’s re-birth with local music venues, and the resulting entertainment for all to enjoy. If you didn’t catch the headlines yesterday, check this out: www.marinij.com/gratefuldead.

And looking back at an epic 2011, here’s this: www.marinij.com/2011rock.

Happy New Year—make it a musical one.

Thanks to the Marin Independant Journal for the continuing contributions to promoting music and the arts in our community!

Realtors Are Buying this Year. Are You?

linda@quinnsolutions.com (Linda Quinn) — Fri, 06 Jan 2012 10:31:10 -0800

What buyers must hate most when dealing with realtors are standard phrases such as, “It’s such a good time to buy,” especially said in a gushing tone. While this advice can usually be backed up with some rationale, it’s so over used and overheard, it has lost credibility.

Here’s better advice. If you’re tired of hearing what realtors are saying, take a look at what we’re doing: We’re actively looking and buying this year.

Last summer one of my colleagues casually mentioned that he planned to buy another property but was waiting for 2012 because he thought prices were going to drop a bit more. We talked again this week and he is on track to buy this year.
I recently visited 850 Minnesota and the salesperson told me that while they have closed sales, she was surprised there were so few investors looking. However, one just made an offer that week and she was a realtor who was showing the complex to her buyer. When she learned about the rents and saw the condition of the unit, she decided to buy herself.
Another colleague told me last week that she found a condo that she wants to buy this month.

I too am actively looking to buy this year for several reasons:

Affordability. I will pay less on my mortgage than if I rented what I want to buy.
Locking in rates. I think where rates are going next year will become more uncertain. It’s worth locking in a rate now.
Ownership. I mean real ownership, i.e. not shared with a lender. In my situation, I can own free and clear in 15 years.
Investment opportunity. This deserves a separate article but the main theme is that I have cash and I want to put it in real estate.
Forced Savings. Having owned real estate before, I think an underrated benefit about buying real estate is forced savings.

I get it. Many of us have lost money because values have gone down. However, if your original plan included the goal of paying off your mortgage in the reasonably foreseeable future, there is also a good chance you are using money to invest that you normally would not.

What are you doing this year? I would love to hear about your pessimism and your optimism.

Sewer Inspection Always a Good Idea in San Francisco

llanzone@mcguire.com (Laura Lanzone) — Thu, 05 Jan 2012 15:10:43 -0800

Among the inspections I recommend for buyers, along with contractors and pest inspections, is the sewer lateral. In San Francisco, our pipes can be over 100 years old and are often made of clay. Cracks and clogs from tree roots and debris can cause major problems. I unfortunately experienced this with my own house when the downstairs toilet flooded into the shower. I’ll leave it at that—but seriously—YUCK!

When looking at the disclosures for a house you’re interested in, see if they mention replacing the pipes from the house to the street. If there’s no mention have your realtor ask, they may have forgotten that it was done. If nothing has been done, I highly recommend calling a plumber and having them come out when you do your other inspections. The plumber will run a camera through the pipes and see if there are any obstructions or if the pipes are old and cracked and will make a recommendation as to whether they need replacement. This will only cost you a couple hundred dollars and could end up saving you anywhere from $5K–$15K, depending on the distance from the house to the street, pipe depth, extent of damage and so on. This is definitely not a reason to back out of a deal, the work can be finished in a few days and you can often negotiate the cost with the sellers during escrow as it affects the value of the house.

I generally recommend this for older houses, multi-unit buildings, and small (two or three unit) condo buildings. Large condo complexes are generally newer and will have Homeowners Associations (HOA) fees that will likely be dealing with these issues.

Hayes Valley is All Grown Up

ablakeley@mcguire.com (Amy Blakeley) — Wed, 04 Jan 2012 18:03:13 -0800

When I first moved to San Francisco, Hayes Valley consisted of a few edgy clothing stores and boutiques and a couple of decent places to eat. Today, Hayes Valley has matured into a truly vibrant neighborhood—a great place to live with lots of new additions and more on the way.

Hayes Valley was a relatively depressed area up until 1997, when the final remnants of the old freeway (demolished after the 1989 earthquake) were completely torn down. Then, a slow revitalization started to take place. It was with the opening of the new Octavia Boulevard in 2009 that such a flurry of boutiques and restaurants began to spring up, making Hayes Valley a worthy culinary and retail rival to neighborhoods like Pacific Heights and Cow Hollow.

There are many benefits to living in Hayes Valley, all of which are based on its location. Hayes Valley is very central, allowing residents to get to every part of the city quickly and easily. There is excellent freeway access, making it a fantastic place to reside if you commute to the south or east bay. Hayes Valley is relatively flat offers excellent walkability and bike-ability, not only within the neighborhood, but also to bordering the Lower Haight area as well as all of the great restaurants on Market Street. You can get to hip Mission Dolores and Valencia Corridor areas in the Mission on a bike in just a few minutes. Above all, Hayes Valley sits in San Francisco’s Sunbelt, rarely seeing the fog. In my opinion, Hayes Valley has the best and most sidewalk and patio seating in the city.

Enjoy this walking tour of Hayes Valley, highlighting only a fraction of the great boutiques, cafes, and restaurants the neighborhood offers.

Got questions about living in Hayes Valley? Contact me at 415.533.2496 or ablakeley@mcguire.com.

Home to Memories

cynthia@cynthiacummins.com (Cynthia Cummins) — Wed, 04 Jan 2012 09:40:13 -0800

A friend of mine just had the interior colors of her Victorian cottage refreshed for the first time since the late ‘80s, when shades of peach and grey were in vogue. The conscientious painter took care to prep all the trim, wainscoting and built-ins before applying paint. He was pulling hardware, filling holes and sanding when he called to my friend with a question.

Did she want him to remove this piece? It was a strip of wood studded with five hooks and affixed to the back of a door, sitting about 3 feet from the ground. Tears stung her eyes as he pointed to the makeshift coat rack.

She took a deep breath, “Oh, yes, that can come down.”

The back of the door had been her son’s place to hang his jackets as a pre-schooler. And now he was grown to 6’2” and had a daughter of his own. Later in the day the painter would find the door jamb where her child’s height had been measured in pencil over the years and, no, she wasn’t ready for that to be painted over.

Houses hold tight to our dreams and our memories. As Gaston Bachelard writes in The Poetics of Space, “…if the house is a bit elaborate, if it has a cellar and a garret, nooks and corridors, our memories have refuges that are all the more clearly delineated.”

When I go out on Tuesday brokers’ tour to see what’s new on the market, I’m thinking about bedroom count, garage (or lack thereof), location, condition, price and whether or not a place suits my client. Yet I am mindful that there are many, many stories contained in every house, condo or apartment. I believe that part of my job is honoring those stories and the people who lived them.

I wish for you happy memories of 2011, and may all your dreams come true in 2012!

Coming Soon: New Pacific Heights Residences at the Washington

ablakeley@mcguire.com (Amy Blakeley) — Wed, 21 Dec 2011 11:39:25 -0800

I have been anxiously awaiting the completion of The Washington, a new development of 26 residences in Pacific Heights at 1840 Washington Street. This new multi-residential development sits on the eastern edge of Pacific Heights, and offers its residents excellent access not only to Union Street and Fillmore Street shops, but also to lively Polk Street in neighboring Russian Hill. The current expected release date is mid-to-late January 2012.

Many units will offer excellent water and/or city views. The eight story building will offer six 1BR/1BA units, eighteen 2BR/2BA units, and two 3BR/3BA penthouse units with wrap-around view decks. Unfortunately, the developer has chosen to keep one of the penthouses, which means only one 3 bedroom will be available. There is a common roof terrace with amazing views for entertaining. All units come with deeded parking for one car.

Approximate square footage for the units range from 855 sq. ft. (1 bedroom) to 1485 sq. ft. (3 bedrooms). The open floor plans are designed to optimize space and natural light. Expect finishes to be high-end, quality products in neutral tones. Here is a sneak peak at the finishes and floor plan of a typical 2 bedroom:

Kitchens will have Bosch appliances, Studio Becker cabinetry, and Ceaser Stone quartz countertops. You will see Kohler and Grohe in the bathrooms along with stylish tiling and flooring by designer Ann Sacks.

There currently are no plans to have a doorman at The Washington; however the building lobby has been designed to accommodate a doorman if the future residents decide to engage one.

Pricing for The Washington has just been released. 1 bedrooms start at $725,000; 2 bedrooms start at $835,000; and the 3 bedroom is $2,095,000. Please feel free to contact me for more pricing information, or to set up a viewing, at 415.296.2173 or ablakeley@mcguire.com.

How Do I Find My True Property Value?

jcomer@mcguire.com (Jamie Comer) — Mon, 19 Dec 2011 15:30:36 -0800

What are Beds and Baths Worth?
Bathrooms can be valued at $15,000 per half bath. I value bedrooms at $30-50K, depending on the size of the room. Technically, a bed or bath added without permits should not be included in the value of the property, however in practice it almost always is.

Does Floor Location Matter?

Except for high rises, no adjustment should be made unless the unit is a top floor unit which tends to sell at a premium as they tend to have more sunlight and privacy. In those homes under $2M, a top floor unit will sell for 10-20K more than one below it.

How Do You Value Finishes/Upgrades?
Upgrades help your home get sold sooner as they attract more people into open houses and private appointments, but upgrades alone do not get a home sold. The first filter for a search will always be price, bed and bath count, and neighborhood. Seldom, is this order of filter revised. In a down market where buyers have anxiety about purchasing a home that may lose value, the buyer gets very nervous about spending up for finish level. Finish quality may contribute $50K of value unless the home has undergone a down to the studs remodel and the actual floor plan has been altered or square footage has been added. I have seen homes in premium neighborhoods like Pacific Heights and Presidio Heights sell for 10% less than their 2008 price—despite the fact—that the kitchen and bath had been beautifully remodeled.

When in doubt about adding an upgrade remember this: In a down market finishes ADD urgency, not value. As a former interior designer, I will tell you the key to adding value with upgrades is to create lifestyle not aesthetic. Don’t buy a subzero fridge for $10,000; instead spend $8,000 adding a home office alcove to the kitchen, and $2,000 on a stainless steel GE monogram. Don’t spend $18,000 on custom drapes. Spend $18,000 on French doors and a patio to the backyard. Remember you are creating liquidity, not value; you’re spending money on the freedom to make a move.

Do I Take Foreclosures and Short Sales Into Account?
If they’re a dominant force in your neighborhood or a competing one, then yes. For example if you own a unit in District 8B, Downtown/Barbary Coast, then yes because of the inventory of the neighboring community—South Beach, which contains 18% distress. If you own in Cow Hollow then no because Pacific Heights and the Marina and Cow Hollow have seen less than 1% distress in their neighborhoods; it’s not a significant valuing factor in these neighborhoods.

What’s the Value Difference between Side by Side Parking and Tandem?
An independent spot is valued at approximately $60K, while tandem spaces are valued at approximately $40K as they have less accessibility. A private garage may be valued at $80K because it affords storage space.

Is There a Difference between a Two-Unit Building and a Six-Unit Building?
Absolutely! An appraiser will likely add $50K in value to a home in a two-unit building when comparing it to a four or six-unit building.

What About Outdoor Space?

On an appraisal schedule, outdoor space can be valued at $75K and, on paper, a property may qualify for the adjustment whether it has direct access to the outdoor space or not. In interacting with the home, whether a buyer is engaging with a property online, in private appointments or on open house, there is much more value and urgency placed on those homes that offer direct access to an exclusive use (or even shared) outdoor area, particularly if it is a backyard as opposed to a deck. If you have a home with a yard but no direct access, it is absolutely worth your time and money to investigate whether your CCRs allow for you to create direct access.

Find me on Facebook, follow @JamieComer, or connect with me on LinkedIn and join our real estate convo!

Dear Santa: Wishing for San Francisco Real Estate this Year

cisaacs@mcguire.com (Carole Isaacs) — Fri, 16 Dec 2011 13:28:43 -0800

Leaving for a Saturday walk to North Beach from Cow Hollow I met a young man in the hall of my building dressed in an amazing stripped red suit (with tails) that he proudly told me he bought for $11.00, and it fit perfectly. I commented it was perfect for the right occasion, and he said that he was on his way to Civic Center for SantaCon. He suggested I drive there to watch the action. Drive? What was he thinking? I was on my way for a walk to lunch in North Beach.

Walking back from lunch through Chinatown, and over Nob Hill it wasn’t long before a Santa appeared on the horizon. A block of two further on I came upon groups of Santas and Santa’s Elves happily on their own version of a Saturday walk after a cocktail, or two. By the time I reached Polk Street the street was full of Santas and traffic had slowed to a crawl.

As a REALTOR® I marveled at the thought of the economic impact the wave of young people coming to San Francisco would have on the city. San Francisco has always been a place where people come to have fun and seek their fortune, but today it is also a technology center where people come for jobs, and to make money.

Today the rental vacancy rate here is almost zero. Those who have had a few years to save enough for a down payment on a condo, or house are busy nesting, and the baby boom is evident in all parts of San Francisco.

If the extraordinary number of Santas and Elves celebrating SantaCon has even the slightest relationship to the number of buyers who will be in the market looking for a home in 2012 I expect an increased number of home sales along with an increase in sale price.

What to do now that is different? Both buyers and sellers should talk now with their REALTOR® about their strategy to handle multiple offers, and back-up offers. Be ready to make a deal when the market is hot in 2012.

By next Christmas if you plan carefully, you can meet your friends at Civic Center for SantaCon and end the day with dinner in your new home.

Would you like to try CleanOffer? Help in your search or selling your home? If so, please e-mail me at callingcarole@gmail.com or call my cell 415.608.1267. Find me on Facebook at San Francisco City Living or follow me on Twitter @CaroleIsaacs and stay up to speed with the best of the city.

To Bake or Not to Bake: What is Your Priority?

cisaacs@mcguire.com (Carole Isaacs) — Fri, 09 Dec 2011 12:13:16 -0800

Every buyer has a list of must haves when they search for a home. In San Francisco, having the right location—not just neighborhood, but also the right block—a view, and/or a garage may be number one on your list.

The holiday season is the time when buyers who had a kitchen at the top of their list, or dream of what they will do when they find a home with the perfect kitchen, get to show their stuff.

If a perfect kitchen is your priority, it is important to understand that almost always this will involve at least updating, if not a full remodel to reach the state of kitchen nirvana you long for. I recently sold a home in Glen Park, at 309 Surrey Street, where the buyer was looking forward to many years of baking for the holidays. She wisely could see that although she longed for granite, the tile counter top could easily be replaced, and was not a deal breaker. The kitchen layout was good, no walls to move, or cabinets to replace.

A complete kitchen remodel start to finish generally takes between six months to a year and involves an architect, contractor, and permits. There are many decisions, small and large, to be made; from picking out cabinet knobs, to choosing a refrigerator, as well as a stove. If you live in a condo building it is important to closely review the rules pertaining to remodeling. Many buildings have specific times when work can be done. In a private home it is not uncommon for contractors to occasionally work long hours to finish up a job. This will not be possible in a condo.

What if your kitchen would fit on the head of a pin, but with the holiday season you will still need an occasional pastry or special cake for a party, or special dinner? This is no problem living in San Francisco. Thinking about my own favorite bakeries I searched San Francisco Bakeries on Yelp. The search turned up 1295 San Francisco bakeries. There are choices!

Cupcakes are the latest craze. There are specialty bakeries in many neighborhoods from North Beach, Mariana, Cow Hollow, to SOMA to choose from and their cupcakes all look delicious. Many have rave reviews on YELP. The baby boom has made cupcakes a must have at any kids’ party.

I am always willing to try out a new bakery. If you have a special one you love, please let me know and we can meet there, have coffee and dessert, and talk about real estate, kitchens, bakeries, and how lucky we are to live in San Francisco.

Would you like to try CleanOffer? Help in your search or selling your home? If so, please e-mail me at callingcarole@gmail.com or call my cell 415.608.1267. Find me on Facebook at San Francisco City Living or follow me on Twitter @CaroleIsaacs and stay up to speed with the best of the city.

Real Estate Q&A: Pacific Heights Condos, Marina Buyers and More!

jcomer@mcguire.com (Jamie Comer) — Thu, 08 Dec 2011 14:09:08 -0800

QUESTION:
I recently toured with a buyer that was keen on finding a condo in Pacific Heights, Presidio Heights or the Marina/Cow Hollow. Because these were experienced buyers, we viewed a larger cross section of inventory than the average buyer would. They were willing to consider things that needed significant work—adding garages, bathrooms, replacing foundations, etc.—and also included TICs and co-ops in their search. Despite casting this larger net, they were surprised at how few choices they still had. As we were about to write an offer the buyer asked, “Have we really seen everything? It doesn’t seem like there are a lot of homes to choose from.”

ANSWER:
Contrary to national news, the reality of these highly-specific neighborhoods and corresponding employment pool has created a local experience where there isn’t enough inventory. The average number of transactions in Pacific Heights, Presidio Heights, and the Marina/Cow Hollow from 1996 to 2006 was 386 per year. As of Dec 1, 2011 there have been 220 transactions. Assuming the rest of the 2011 paces at the same rate, volume is down 38 percent over the pre-crash, 10-year average. You could say there aren’t enough buyers. However, I have several that cannot find a home and a list of sellers that will not market their home at the suggested comp price. As someone that works this market every day I will tell you that the problem is not demand, it’s supply!

QUESTION (follow up):
I’m a seller; what does this information mean to me?

ANSWER:
If you’re considering a move then turn off the news, pick up the phone, and call a REALTOR® for a current market analysis of your home; make certain you get more than one opinion. I can provide an accurate value assessment, and you’re welcome to call and/or email me—don’t worry about your home being “show ready.” The best time to market your home is April through June, so pick up the phone now. These charts show that condos in Pacific Heights, Presidio Heights, and the Marina/Cow Hollow move the fastest and sell at higher prices in the second quarter. Now is the moment to call your REALTOR® and make a list of things to get done in your home.

Find me on Facebook, follow @JamieComer, or connect with me on LinkedIn and join our real estate convo!