Last week, a north slope Bernal Heights San Francisco house for sale received 17 offers and is in contract for almost $100,000 over the asking price.
I have two things to say about this.
1. Perhaps, the list price was a bit on the aggressive (low) side. Ya think?!
(This strategy of listing low to generate interest works really well for home sellers but can be frustrating and upsetting for buyers. Keep in mind that the list price is NOT market value…it could be too high, too low, or just right. Learn the local market, work with an expert real estate professional, like us of course, and remember if it looks too good to be true…
2. All real estate is super local and in choice San Francisco neighborhoods like Bernal Heights, there is high demand for real estate.
So when you’re out buying a home make sure you understand the local market for your specific neighborhood of interest. How many active listings are there? How many have sold in the past 3 months? How many listings are act.cont. or pending?
If there are more homes in escrow and recently sold than there are currently available & on the market, then there is more demand than supply for local San Francisco real estate. This is not Las Vegas. We do not have miles and miles of new construction to choose from. This is San Francisco and in this case, Bernal Heights, and you gotta play to win.
But fear not…prices are still down from the peak (for now) and interest rates are extremely favorable. It is a great time to buy a home. This particular north slope Bernal Heights home will sell in 2011 for less than it did in 2006 (but not by much). The reality is that there is stiff competition but as a San Francisco first time home buyer you are still making a smart long-term investment move. Again, this is not Las Vegas.
One final word on this Bernal Heights listing that got 17 offers – this means that 16 home buyers are still on the hunt for that elusive single family home priced under $800,000. Yikes.*
* If you own a home in Bernal Heights and are thinking of selling, this is very good news. Research the local Bernal Heights real estate market.