Heading into the thick of San Francisco’s traditionally robust spring season, demand for residential real estate is red hot. As we’ve reported, offer dates and bidding wars are back in a big way. Listings previously skipped over, too, are garnering newfound interest among buyers. In fact, dozens of homes on the market for 100+ days have been put under contract in recent weeks.
The ultra-luxury apartment at 2000 Washington Street #7 is one such property. And, following more than four years searching for a buyer, it is now officially off the market.
Originally listed at $25 million in 2019, the ambitious ask for this rare duplex penthouse would have logged a more than 50 percent gain over its apples-to-apples previous sale. It also would have made 2000 Washington Street #7 one of the city’s most expensive home sales of all time. But whatever merit that price may have had, it failed to produce a buyer.
Relisted and reintroduced in April 2022, it wasn’t long before a multi-million dollar reduction shaved 20 percent from its advertised price. Another year would come and go, sitting, waiting, wishing for an offer. And then, finally, 533 days since reappearing on the market, it went under contract. The sale closed last week for $16 million.
While that price is officially 19.6 percent below-list according to industry stats, it is really a full 36 percent under the original ask. It’s also exactly what the seller had paid for the place (surely, that is no coincidence).
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Wait, There’s More
Attractive buying opportunities exist all across the city and at all price points. But if you’re on the hunt for a low-pressure deal, time is running out. Like these listings below, the most compelling properties are quickly disappearing. Contact me to see what else is out there.
This premier penthouse in Pacific Heights went under contract just days ago. We featured the home last month and noted that opportunity knocks to negotiate a deal. Curiously, not one adjustment to its $5.495 million list price was made since it debuted in September. But, having been on the market for 100+ days, it’s probable that the accepted offer is below-ask. We’ll be watching to see where things settle here at 2100 Green Street #800.
Initially seeking $4.495 million while off-market, this Moroccan-inspired masterpiece first appeared last spring. By the time 26 Graystone Terrace was introduced to the public, its price had dropped $500K. Still no offer came. In November, after a brief hiatus, the home was relisted and reduced to $3.295 million. An open house last month was the most well-attended since its return, according to the listing agent, and a buyer has stepped forward.
Home Buying 101
OBTAIN PRE-APPROVAL FROM A LOCAL LENDER
› 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 me and I 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.
