market data

The expensive mistake that many home sellers make

Posted on Patrick Lowell

One of the biggest, and most costly, mistakes sellers make is setting the list price too high. Overpriced homes linger on the market, invite price cuts, and usually end up selling for less than if they had been priced right from the start. Pricing your home correctly from day one is critical.

Why days on market matter

The “days on market” counter is visible to every buyer online. When a listing sits unsold, buyers start to assume the home is overpriced or has issues. Each extra day weakens a seller’s position and shifts leverage to the buyer.

What happens when you miss the mark

Overpricing creates opportunities for buyers. Experienced buyers watch for stale listings and price drops, then step in with low offers when competition has faded. That puts sellers at a disadvantage during negotiations.

The myth of underpricing

Sellers sometimes worry about underpricing, I get it, but the risk is quite low. You’re never obligated to accept any offer at any price. If the price attracts strong interest, buyers compete and push the final price higher. You stay in control.

The bottom line

The market ultimately determines the price, not the seller and not the agent. Setting an attractive list price from the beginning invites conversation from prospective buyers and creates the conditions for the strongest offers and terms.

Ready to talk about potentially selling your San Francisco or Wine Country home? Reach out anytime and let’s discuss our 3-Phased Marketing Strategy to see if it is the right approach for your situation.

SF Real Estate Market Update May 2016

Posted on Patrick Lowell

Home sales activity, representing buyer demand, is one of the most basic market trend indicators. We typically compare the same time period because home sales are seasonal, lower in the winter and summer months and higher in the spring and fall. Over the first four months of 2016, the number of homes sold declined by 13% for single family homes and 10% for condominiums versus the same months in 2015. While this does represent lower demand, reviewing other indicators will provide a better understanding of overall market conditions.

The amount of supply available, how long it takes to sell and at what price, will provide a better indication of market dynamics buyers and sellers can expect. On the supply side, the inventory of available homes for sale remains low, but it has increased compared to last year. Single family home inventory was up slightly in April 2016 versus the prior year to 587 homes. Condominium inventory year-over-year was up by 94 units or 15%. In terms of the time required to sell homes placed on the market, the average in 2016 was 35 days, four days longer than in 2015. A selling time under 60 days is considered short and seller favorable, indicating an active market. Finally, the median home price, which represents market conditions motivating a buyer and seller to agree upon a sale price, surpassed or equaled its twelve month high in April 2016.

Median Sales Price

7.1%

5.9%

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Patrick’s Properties

239 8th St #7

South of Market

Hip urban loft with large private patio, parking & storage
Listed at $899,000
Open house Monday, May 30th: 1pm-4pm

81 Clairview Ct

Midtown Terrace

Sweet single family home, 3 beds 1 bath
Listed at $895,000
Open house Tuesday, May 31st: 1pm-2:30pm

1350 Natoma St #7

Inner Mission

Newer townhome-style condo. 2 beds 2.5 baths, parking & storage
Listed at $849,000
Showings begin June 11th

How’s the Real Estate Market in San Francisco?

Posted on Patrick Lowell

Every day without fail, someone asks me how the market is doing. I love this because it tells me that people are interested in our city and engaged with real estate. Everyone is curious about prices and trends and what the future may hold for the local real estate market in SF.  I thought it may be helpful to prepare a city-wide 5 year trend of median prices of single family homes, condos, and TICs.  So here it is!  I have tons more data to share on a neighborhood level too, so just let me know if you have questions about your specific area of SF.  Enjoy!