A solid two years since the first new homes at Murano landed on the MLS and more than six months since any of the remaining units went under contract, another penthouse has been scooped up (finally). We last featured the top-floor corner residence back in October 2022 when it had just received a $300K price chop down to $1,995,000. After going offline for the holidays and returning anew this past January, the sale of 3131 Pierce Street #402 was finalized last week for a reported $1,925,000.

While the developer’s concession in this case is relatively small — less than 5 percent of list price — it highlights a trend in selling new construction today: willingness to cut a deal behind closed doors but bolstering the value of unsold inventory by limiting advertised price adjustments. This stands in contrast to firm buy-it-now pricing during the last decade’s rising market and, more recently, openly and aggressively competing for business. Well-qualified buyers who will open negotiations with any reasonable offer have everything to gain.

At Murano, the final opportunities to take advantage of this unique climate have come down to one last penthouse and one bi-level townhome.

3131 Pierce Street #403 is marketed and listed exclusively by cooperating broker Vanguard Properties. Listing photos above courtesy of SFAR MLS are of a similar representative unit.

Featuring 2 bedrooms, 2.5 baths and expansive east-facing city views, 3131 Pierce Street #403 was initially offered at $2,295,000. Incremental price reductions brought it down to $1,895,000 this past October, and it is ripe for a deal. Relative to the recently sold penthouse, it is approximately 200 square feet smaller, and lacks a desirable corner position as well as peekaboo bay and bridge views — all characteristics to take into account when arriving at fair value. It does have a superior layout in terms of privacy, however, with the bedrooms situated at opposite sides of the living area.

3131 Pierce Street #101 is marketed and listed exclusively by cooperating broker Vanguard Properties. Listing photos above courtesy of SFAR MLS.

The sole townhome and largest residence at Murano, 3131 Pierce Street #101, has been listed at $2,395,000 since September 2021. On the heels of a $100K adjustment downward, the developer was willing to also credit two years worth of HOA dues to a buyer. Needless to say, the market has softened significantly since then, in part due to benchmark mortgage interest rates more than doubling. In our estimation, there is close to a half million dollars that a buyer may negotiate off the top in a strong offer to purchase this 2-bedroom and 2.5-bath home.

Ready To Make Your Move?

 

CONSULT WITH A LOCAL LENDER AND OBTAIN PRE-APPROVAL

› This is essential before making an offer, and can take anywhere from a few days to a week or more. Consider speaking with more than one lender and making them compete for your business. Having your loan file already reviewed by the underwriter will allow you to make a stronger offer. If you plan to stay put in your new home for only a few years, choosing an adjustable-rate product will lower your interest payment. Contact us and we can point you in the right direction.

GET FAMILIAR WITH HOMES FOR SALE AND RECENTLY SOLD

› Homes today are more likely to sell at or near the asking price, but this is by no means a rule. Egregious underpricing is still a common strategy used by sellers and their agents to attract interest (and multiple offers). Be willing to compromise on your wants — if you wait to find the perfect home, you’ll be waiting forever. You can upgrade and personalize a property but you cannot change its location.

COMMIT TO ONE AGENT AND TOUR HOMES TOGETHER

› Let’s talk! There are dozens of off-market and coming soon listings in San Francisco which are not marketed to the public. Properties in San Francisco are not straightforward and value isn’t always obvious. Your agent should always see any property that you may consider purchasing. They should also obtain the seller’s disclosure documents, actually read them, and review them with you as part of your due diligence. Whether you make an offer or not, consider it education.

MAKE THAT OFFER, BABY!

› Buyers today have an opportunity to negotiate price and all sorts of terms. The worst that can happen is that the seller says no. If your offer is not accepted outright, you can try to find middle ground, agree to everything the seller wants, or choose to walk away. In San Francisco, buyers and sellers use a purchase agreement and other standard forms not used outside the city. Working with an experienced agent who knows them inside and out, respects the local customs, and presents a buttoned-up offer on your behalf will give you an advantage.