SAN FRANCISCO – A home in San Francisco’s Noe Valley neighborhood recently sold for nearly $1 million over its asking price — a figure that surprised even the seller.
The 98-year-old, 1,200-square-foot renovated home, with two bedrooms and one bathroom, was listed at $1.3 million.
Fifteen offers push price to $2.2 million
What they’re saying:
“We got 15 offers. We had 60 disclosure packages out, a lot of people looking at it, and we ended up at $2.2 million,” said real estate agent Sean Kelly of HomeByRize.
That final sale price was roughly 70 percent above asking.
“We didn’t think it was going to go this far,” Kelly said. “But we generally try to price about 20 percent below what we expect it to go for.”
The home includes a large garage with plenty of room to expand and sits in one of Noe Valley’s most desirable locations.
Changing market conditions
Dig deeper:
Fif Ghobadian, senior vice president at OriginPoint Lending, said the housing market looks very different today than it did just three months ago, when interest rates were in the 7% range.
Sellers had to give up a lot to make the sale.
Ghobadian said, “The seller was trying to come up with all kinds of options for the buyer to buy — buy-downs, bringing the rate down temporarily, credits, all kinds of options,” Ghobadian said.
Now, with adjustable rates in the mid-5% range and fixed rates in the high 5% to low 6% range, Ghobadian said demand is heating up again.
Buyers returning to the market
“There’s a big level of people who were sitting on the sidelines waiting. Now they’re coming out of the woodwork, putting in offers, and you’re going to see multiple offers— especially if it’s a single-family home in a good neighborhood,” said Ghobadian
That’s exactly what defines Noe Valley.
“When the fifth or sixth person comes in to make an offer, the agent says, ‘I already have four offers.’ That prompts you to offer more,” she said.
That competition often sets off a bidding war.
“This is the start of it. This is what happens,” Ghobadian said.
Advice for buyers
What you can do:
Ghobadian said buyers shouldn’t wait if they find a home they love because they can refinance later.
“You want to get into the market before the rates drop too much,” she said.