A deal? On real estate in San Francisco? Have I gone mad?

Yes I have (and my wife and friends would probably agree).

At my open houses and online, I have people ask me where’s the deal? Of course, the deal they are referring to is being able to buy real estate at a price lower than market rate. 

They’ve heard the press and others speaking of the great recession and the chance to get homes/condos at super bargain prices, and they want to find them in San Francisco.

That’s the first problem with finding deals: they are all in some place other than San Francisco. Sure, there have been foreclosures and short sales in San Francisco, but rest assured they did not end up selling for a “deal.”

I’ve had several recent examples of just how the real estate market works in our great city. There are so many people looking to live here, and so many more looking to invest in one of the best real estate markets in the country, that deals here just don’t exist. Even during the worst of times, homes and condos have garnered multiple offers and many properties sold at or above list price.

And if you think you see a deal, you might be mistaken: The inventory that has gotten stale over the last year is still sitting there there. It’s a testament to being over-priced, or having some real issues (lawsuits, bad construction, etc.), preventing a normal transaction. Some buyers mistakenly think that with a high number of properties on the market that aren’t moving, they can get a “deal.” Well, maybe they can on a home no one else wants. But, place a good home or condo on the market, price it properly and watch as multiple buyers vie for a chance to own it.