$900,000 Above the Asking Price. WTF! Really? | San Francisco Real Estate Podcast

$900,000 Above the Asking Price. WTF! Really? | San Francisco Real Estate Podcast


hey hey hey and welcome to the San
Francisco real estate podcast with your host Matt Morgus all right that’s me
welcome to San Francisco everybody today is September 7 Friday 2018 almost and a
summer 2:45 p.m. looking out at the bay right now and the Golden Gate Bridge is
looking fantastic as always the Sun is out
people are out today when it’s sunny in San Francisco I know you know this but
when it’s sunny in San Francisco everyone just flocks out to the streets
traffic everywhere people in every intersection and I love it good positive
energy good positive vibe thank you guys for listening to the podcast as you know
you can download this podcast just by going to iTunes type in San Francisco
real estate podcast and you’ll find it you can also check out my website which
is I don’t ever really promote my website but you should check it out
there’s some really cool stuff there I have an awesome blog posts really cool
houses on there I take some really cool pictures on my Instagram page too but
check out northern SF dot-com cool cool cool cool today I was stumped for
motivation every now and then I I’ve done so many of these podcast like
alright what should I talk about today what should I talk about and I sat down
I had everything the the microphone plugged in I had my earbuds and I’m
ready to record and I get an email from a buyer of mine who I’ve been emailing
with all week back and forth we’ve run comps on a property which
means we’ve we pulled sold data and we wanted to see what its gonna sell for
and this and that so he sends me an email and says hey Matt we do want to
write an offer on this house and I know offers would do about an hour ago I said
okay no problem let’s see what we can do and it’s pretty crazy because it’s it’s
amazing how fast things work in this business and I know how people are
people are busy people have busy lives and so like they move at their own pace
so when you get that call sometimes you have to drop what you’re doing so it
took me about an hour I’m a little bit past my schedule right now because I’m
supposed to be podcasting about an hour ago but let me tell you the story this
actually gave me motivation for a nice topic today so here’s just a normal real
estate story here in San Francisco so you can see what it’s like being a buyer
here in San Francisco in September of 2018 now if you’re listening to this and
it’s twenty twenty or twenty twenty-one it’s in the future you can look back and
say wow that was either different it might be the same I have no idea I wish
I could predict the future but here’s how the story goes I get the phone call
I get the email pick up the phone I call my buyer back and we want to write a how
an offer on a house in San Francisco it’s listed for 1.6 million dollars ok
1.6 million it’s a it’s a nice we call it a fixer-upper house it needs a little
bit of this needs a little bit of that needs a new kitchen needs new bathrooms
in a great location them it’s in a really really really good location it’s
not like Pacific Heights location but I’m not gonna say where it’s at in the
city but it’s a very good location very desirable I spoke with the listing agent
a few days ago maybe two or three days ago and I called and talked to her and
she said Matt you know at this time we have four offers on it pre-emptive
offers because the offers are due today and you need to come in at least over
two million dollars so that’s four hundred thousand above the asking price
and I go back to the buyer and say well you know we’re gonna need to come in
we’re gonna need to step it up and we’ll go from there but in the meantime I I
reach out to the agent again today I shot her a note via email saying hey
we’re gonna write on your right on your house please wait please wait for us
because we want to jump in the mix and I get a call back a few minutes later and
she says Matt nice to hear from you thank you for calling we have officially
24 offers in hand as of right now 24 offers and she said if your buyer is
willing to go above 2.5 million that’s two and a
half million dollars then you can jump in the mix and I said oh okay let me
call my buyer and see what he wants to do so in these situations I never know
what what a client wants to do I can’t once again I can’t read their
minds I have a good inkling of what I think they might do but just from a
shocking point of view just just think about this from a like holy shit point
of view you know a house is listed for one point six million dollars good
location but it needs everything it needs new electrical needs new plumbing
needs a new kitchen need some foundation work for sure but it’s in a good
location it’s probably gonna take a year or two to do the work and to do it right
with permits and get a good architect and a good contractor in there to take
care of it and and we know that it’s gonna be
selling for nine hundred thousand dollars above the asking price so I
asked the buyer and I and I said they live in Southern California the buyers
do and they’re used to the Southern California market they grew up in the
bay they know the bay area very well and he was shocked let’s put it that way he
was shocked he was just like wow that is that’s different from the Southern
California market where homes sell for you know you know a hundred thousand two
hundred thousand like and the very high-end above the asking price so I
just wanted to give you that story of what it’s actually really like here and
what kind of offers you’re competing against here in San Francisco it is it
truly is remarkable I mean I’m I’m in this business I see it every day and not
everything shocks me I’ve been around the block plenty of times but when you
hear of homes selling for nine hundred thousand above the asking price then
yeah you know it’s it’s pretty shocking now you might be thinking to yourself
Matt why are you so shocked by this you’re in the business
why is this shocking to you didn’t you pull the comps didn’t you look at the
data and see that the house is gonna go up to a crazy amount and the answer is
yes I did we pulled the comps and we found six other properties that are sold
within the last a year that are similar to this one and we we looked at the
comps and went over them very very well and clearly and noticed that on average
homes were selling on average in the neighborhood for 21% above the asking
price so even if you do the math you know 1.6 million and at 21% above that
it doesn’t come anywhere close to 2.5 I can’t I’m not doing the math right now
in my head but I know that it doesn’t add up like that sir yeah that’s why
things are a little interesting and a little shocking here in San Francisco
every now and then let’s talk about this this just came to my mind a couple
months ago Steve Kerr Steve Kerr the head coach of the Golden State Warriors
just bought a home here in Pacific Heights on the north side of San
Francisco and this is this is a crazy story and Lee fight let me get the exact
numbers for you hold on one second all right found it so Steve Kerr just bought
a new house and he paid one and a half million 1.55 million to be exact
over the asking price as well so that’s 26 percent above the original listing
price and it’s funny he was quoted as saying I bought a house in San Francisco
and I’m going to have to coach for another 20 years to afford it so I think
that’s hilarious even on in the high-end market here in San Francisco for a
really good property things are selling way above the asking price so 26% I know
some some listeners in Oakland or in the peninsula or the South Bay are like Matt
Wow you know things that sell you know 30
forty percent above the asking price here and that’s right at San Francisco
it’s um it varies you know each property is
completely different I’ve seen things sell at the asking price I’ve seen homes
sell for a little bit below the asking price I’ve seen things sell way above
the asking price this one which is 26 percent above is is good I mean that
that’s that’s crazy I mean that that’s a that’s a crazy price and Steve Kerr
bless you bless you for I never say bless you I’m not really religious but
good for you you got to you got to buy a really cool house in San Francisco I
also got to sit that one open I was I was working that open house I did not
get to meet Steve but I did get to meet a lot of neighbors over there very very
nice people that’s all I got for today people
people people people thank you again for listening to the podcast I really do
appreciate it please share with a friend or family member
hopefully this story today was helpful and you are now a little bit more
informed about the real estate market here in San Francisco so download the
podcast just by picking up your iPhone there’s a podcast apps button open it
search San Francisco real estate podcast you’ll be able to find it download it
subscribe go back and binge listen to all the other episodes there are some
really good episodes they’re getting a lot of good positive feedback from a lot
of people so thank you for listening also check out the website northernSF.com there’s a really cool blog there you can download the podcast there as
well okay have a great weekend everybody this has been matt morgus with the san
francisco real estate podcast and see you next week
bye bye

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