The pickings are getting slim for freshly minted homes in/around the Cow Hollow neighborhood. As purchase activity continues to ratchet up, the most desirable (and affordable) units are quickly disappearing. In fact, just ±60 unsold residences remain among three buildings in the area — Union House, Maison Pacific, and The Belvedere. And without any major new projects under construction, it could be years before additional inventory makes its way to market. This is it, folks!

Since we last checked in on Union House, the number of unsold luxury residences has dropped from ten to seven. There are, as of today, one final 1-bedroom, a 2-bedroom townhome, two upper-floor 3-bedrooms, and three penthouses with 2- to 3-bedroom configurations remaining:

› 1515 Union Street #5F: 1-Bed, 1-Bath, approx. 783 square feet, listed at $1,095,000

› 1515 Union Street #TH2: 2-Bed, 2.5-Bath, approx. 1,481 square feet, listed at $1,795,000

› 1515 Union Street #6B: 3-Bed, 2.5-Bath, approx. 1,940 square feet, listed at $4,995,000

› 1515 Union Street #6E: 3-Bed, 2.5-Bath, approx. 1,871 square feet, listed at $4,995,000

› 1515 Union Street #PH3: 2-Bed, 2-Bath, approx. 1,772 square feet, listed at $3,695,000

› 1515 Union Street #PH4: 2-Bed, 2-Bath, approx. 1,618 square feet, listed at $2,900,000

› 1515 Union Street #PH5: 3-Bed, 2.5-Bath, approx. 1,943 square feet, listed at $5,800,000

 
Let’s take a look a look at those that recently received six-figure price reductions, and keep scrolling for tips on buying a new home…

Residence #5F

1515 Union Street #5F is marketed and listed exclusively by cooperating broker Compass. All images courtesy of SFAR MLS.

All the way back in 2020, this 1-bedroom flat was among the first offerings advertised to the public. It is one of the smallest layouts measuring just ±783 and has consistently been priced (and repriced, again and again) for the buyer on a budget. Originally listed at $1,350,000, the latest $100K adjustment last week has brought the ask down nearly 20 percent to $1,095,000.

Residence #TH2

1515 Union Street #TH2 is marketed and listed exclusively by cooperating broker Compass. All images courtesy of SFAR MLS.

One of two near-identical townhomes fronting Van Ness Avenue, this unit has been touted as the lowest-price two-bedroom for well over a year. Now, it’s the only such configuration left — and newly $200K less expensive at $1,795,000. To give context to this opportunity, consider the other townhome that was purchased for $2,300,000 during pre-sales.

Residence #PH4

1515 Union Street #PH4 is marketed and listed exclusively by cooperating broker Compass. All images courtesy of SFAR MLS.

Just reduced by almost 10 percent to $2,900,000, this 2-bedroom penthouse is on track to sell for less than half of what others have fetched. It may not have the landmark views or the third bedroom or private outdoor space, but it does have pleasant easterly outlooks and easy access to the building’s expansive rooftop terrace. It’s also priced lower than comparable offerings at Maison Pacific and The Belvedere.
 

New Homes 101

 

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.