If the head-turning world of San Francisco real estate has any constant no matter the times, it's OUTRAGEOUS overbids. Indeed, local agents have a unique and longstanding custom of pricing listings strategically with the goal of generating multiple offers. It's an effective means of arriving at true market value when done responsibly. Taken to the extreme, however, it's a wildly inefficient system to produce one successful bidder.

What's a hopeful buyer to do? Pay attention to sales prices, trust the experts, and tune in to our monthly recap right here. Say it with me: If it seems too good to be true, it probably is.

Underpriced 32.41%

The Biggest Askhole

Source: SFAR MLS

On the eastern edge of Bernal Heights, this 3-bed/2-bath/1,050sqft single-family home was touted as having the “BEST PRICE IN SF” at $588,000 — which may or may not have been true. It’s a teaser price nonetheless, and the place does have challenges: the house itself is a major fixer unable to qualify for ordinary financing, the lot is undersized at just 1,750sqft, and it’s located directly across from the freeway. You get what you pay for, and the buyer who ponied up $870,000 for this mess is, unsurprisingly, a property flipper. Just one day after escrow closed, a permit was obtained to remodel the kitchen and baths, install new flooring, and repaint. We’ll be watching for 232 Holladay Avenue to return to the market soon.

Underpriced 32.04%

First Runner Up

Source: SFAR MLS

Marketed as a single-family residence, 1535 Grove Street is in fact two legal units consisting of an upper-level studio (tenant-occupied) and main-level 2-bed/1-bath home (vacant) totaling approximately 2,575sqft. Each unit features updated living spaces, oodles of charming period details, sun-drenched private outdoor areas, and garage parking. A series of bonus rooms and bath in the full basement adds to the property’s functional value, as well as its appeal to multi-generational households and house hackers. In short, it checks a lot of boxes for a lot of buyers. The place settled up over $800K above the list price, purchased for $2,500,000 all cash. That’s the highest price paid for a duplex — but one of the lowest for a single-family — in North Panhandle year-to-date.

Underpriced 30.47%

Second Runner Up

Source: SFAR MLS

In San Francisco’s coveted Inner Sunset neighborhood where the median sales price of single-family homes routinely tops $1.5 million, 1728 11th Avenue was listed at a mere $995,000. There’s a lot going for this 2-bed/1-bath/1,438sqft fixer including attractive architectural details, expansion potential, and a large rear yard fit for an inspired makeover. The biggest drawback — perhaps for some buyers — is that the owner of ±50 years recently passed away in the house. At 14 days on market, the call for offers produced at least one non-contingent contract and the property sold for a reported $1,431,000 all cash. For what it’s worth, one example of what this home could easily become has just landed on the market seeking $2,775,000.