So how does the market look to those of us at Paragon??

Well, open houses have been busier than expected, especially for this time of the year. Often, agents are seeing as many as 40-60 groups of buyers come through homes in every neighborhood, from the Western Addition to Outer Noe to Telegraph Hill.

Many of these buyers are brand new to the market and just beginning to look. With an eye for value, they’re taking a fresh view of the market and often snatching up ‘stale’ listings that have been sitting for awhile—often at exceedingly good prices.

This is also a good time to strike a bargain, since sellers are often more motivated this time of year. No one wants a bunch of strangers traipsing through their home during the holidays, and they’re anxious to move through the marketing period as rapidly as possible so they can settle in with their eggnog and holiday cheer..

This doesn’t mean properties aren’t selling for over asking.. Roughly 70% still go above their listing prices. We are, however, seeing less of a differential between the listing price the selling price. And when there are competing bids, the prices tend to be clumped together, instead of one buyer blowing everyone else out of the water with an unexpectedly high offer.

Finally, just when we thought interest rates were heading up—boom! A drop in the 10-year treasury is leading us to expect an 1/8 of a point reduction in rates. Now may be the time to make your move!

For details on where I think the buys are, call me today and I’ll fill you in. And as always, my emails love to be forwarded. I’m also always delighted to add newbies to my distribution list. So feel free to pass my news on—

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So what’s the Most Expensive Neighborhood in San Francisco???

Well, when it comes to San Francisco condominiums, Russian Hill and Telegraph Hill command the highest sales prices, at an average $890/square foot. This figure can go much higher depending on views, location and building.

The second most expensive neighborhood, from a price per square foot standpoint? Many would point to South Beach, where new home prices often start at $1,000/square foot. Examples of buildings that are commanding these kinds of prices are The Beacon at King and 4th, and The Watermark at Bryant and Beale. Resales in South Beach are also strong. Larger units at the 6-year-old Brannan, for example (at Brannan and Delancey) are garnering as much as $1,400/square foot.

Why do these South Beach buildings command such high prices? Some of the reasons are obvious– great views, snazzy amenities like a pool and private health club, and the exciting sense that you?re on the cutting edge of a fresh, new neighborhood. Other reasons are more subtle. A building?s architecture and the way it relates to its surroundings can have a strong impact. People will also pay a premium for the ?cool factor? of living in a prestige building like The Brannan or the Oriental Warehouse.

Another hot neighborhood coming up? Rincon Hill, a knot of land set just west of 1st Street. The zoning and planning for this neighborhood emulates Vancouver, with high rises on the corners and green spaces set in between. Many say the creation of this neighborhood will turn it into the next Russian Hill, since it offers some of the City’s best bay views.

Rincon Hill is also where some of the tallest residential buildings west of the Mississippi will be. One Rincon Hill (which you can see being built just off the 80 as you cross the Bay Bridge), will be 55-stories high. Set on the crest of the hill, it promises to alter the shape of the San Francisco skyline. Another building topping out at over 60 stories is going in at 1st and Mission. Ultimately 8,000 units of housing will be an added to an area that?s been better known as the no-man’s land you pass through on your way to the Bay Bridge.

Want to know more about new and newer condos in San Francisco? I can fill you in on the size, square footage range, amenities, and average price per square foot for any building in San Francisco. Just call me for the information.

See you next week!

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My intention with these weekly emails is to inform and entertain you. Following is a slightly edited version of an article I wrote for “Alameda Sun” a couple of years ago:

Where the Deals Are

When it comes to real estate, “How do I get a good deal?”, “How do I find a good deal?” and “How do I know it’s a good deal?” are the most common questions. The most vocal respondents to these queries (who are often trying to sell you a book or a seminar) advocate finding motivated sellers and using things like second deeds of trust and hard money loans to finance low-money or no-money down purchases.

There are certainly investors who have done well this way. The downside is the risk– you can lose your shirt and your credit rating if you don’t know what you’re doing. It’s also a labor intensive process where hours and days need to be spent learning about how creative financing works and then pounding the pavement to find that needle-in-a-haystack deal.

The easier, softer path is to look for a reasonably priced property that holds promise for better than average appreciation. Another is to develop some expertise at spotting a good deal when one comes up. Here are a handful of unusual ways to look for a good buy:

1. Wait until the end of the year. While fewer properties come on the market between Halloween and Christmas, many Realtors find the last quarter is their busiest time of the year. That’s because sellers are often more psychologically motivated to “get things wrapped up by Christmas.” Others have been advised by their accountants to unload their properties by year’s end. There are also not as many buyers to compete with, so the prospect of overbidding is lessened.

2. Look for properties that have been sitting on the market for awhile and have had the price reduced. An overpriced property that doesn’t sell within two to three weeks after hitting the market develops a stigma among nervous buyers. Even after the price is reduced to fair market value, they still think that if nobody else bought it there must be something wrong with it. Invariably, the minute someone with an eye for a value puts such a property under contract, it becomes the one that everyone else missed and looks like a sweet deal.

3.Check out new home developments. In a rising market, a carefully chosen new home can be a great opportunity, particularly if you’re not in a hurry to move. New homes are often being reserved for just a few thousand dollars before they’re built. Months later (be prepared to wait awhile because projects rarely finish on time) lucky buyers wind up with an opportunity to purchase something that’s already worth more than what they’re under contract to pay.

So there you have it— three ideas on how to find a bargain from another one of those “real estate experts.” Happy house hunting!

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