But first, five aspects of purchasing new construction that buyers need to know:
Transparent Pricing
› Tired of being outbid by other buyers? You’re in luck! By the time new homes hit the market, there has been months, if not years, of pricing analysis by the developer to ensure they’ll hit the numbers they need. The list price you see is the price you pay (unless a good argument can be made for a reduction — and if you have independent representation described below). Make no mistake that new construction carries a premium over comparable resale units. But in a rising market, by the time escrow closes on a new place, the buyer could have already banked some healthy appreciation.
More Inventory Than Meets The Eye
› Especially in larger developments, units available for sale are held off the MLS and other public listing syndicates so as to not flood the market with inventory. By releasing only a few homes at a time, the developer and their sales team are able to keep prices up. But that doesn’t mean your dream home isn’t available — you just need a broker on the inside track to scope it out and make the deal happen for you before another buyer gets to it. That’s where we come in.
Not Your Standard SF Purchase Agreement
› New residential condominium projects of five or more units require the use of a special purchase agreement approved by the California Department of Real Estate. These contracts are long — super long — and include notices about issues like latent construction defects as well as resale restrictions. It should be accompanied by a Public Report (Final or Conditional). And if a Certificate of Occupancy has not yet been issued by the San Francisco Department of Building Inspection, you’ll want to make sure your purchase is contingent upon receiving that.
Dual Agency vs Independent Representation
› If you walk into the on-site sales office at a new building, you’ll almost certainly be asked to register yourself as a visitor. Read the fine print! Unless you disclose that you are working with a broker, you’ll be waiving your right to independent representation. Why do you want independent representation? For one, it could save you tens of thousands of dollars (and possibly a whole lot more) on the Documentary Transfer Tax described next. Conversely, if you’re represented by the sales team also representing the developer (dual agency), you have effectively zero leverage to ask for seller concessions.
Documentary Transfer Tax
› In San Francisco, this tax is customarily paid by sellers in an ordinary real estate resale transaction. Not the case when buying new construction! New construction purchase agreements almost always stipulate that the buyer pays the tax. With independent buyer representation, you have a chance at negotiating for the seller to pay. Take a look at this guide from the SF Assessor’s Office and you’ll see the tax isn’t cheap — especially when you’re dealing with a purchase price of $5,000,000 and above.
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ORAN
Image: SFAR MLS
Having debuted in late January 2023 with 54 condominiums available for sale — predominately priced between $500,000 and $1 million — ORAN is among the best values in new construction today. And, given its premier location among Polk Street hotspots, it is no surprise that a number of homes are already under contract. The future-forward design of one- and two-bedroom residences in this Lower Nob Hill newcomer features all electric home appliances as well as individual GPS Air filtration, a first of its kind in San Francisco. Amenities include a secure lobby with package delivery concierge, multiple outdoor areas equipped for entertaining, rooftop fitness equipment and a renewable energy system which makes for exceptionally low HOA dues. Qualified buyers may be eligible to receive up to $17,500 in lender grants.
Maison Pacific
Currently under construction at the corner of Pacific Avenue and Polk Street, Maison Pacific is expected to begin selling in late Spring 2023. This latest project by JS Sullivan Development is a mix of 53 one-, two- and three-bedroom condominiums plus a limited collection of townhomes and a single studio unit. Upper floors boast phenomenal views of the city and bay, topped by an expansive rooftop terrace for outdoor entertaining. Pricing is not yet available however homes are likely to start in the $700,000s with limited on-site secure parking offered for purchase separately. Centrally located on the north side of San Francisco in the thriving Polk Gulch area (Nob Hill, technically), all sorts of urban amenities are nearby including a plethora of restaurants and cafes, boutique markets, public transit and parks.
The Belvedere
Can’t Wait To Buy?
These condominium developments have brand new homes available. Take a look and contact us today for additional information about inventory, pricing, and arranging a private tour.
