Investing/Buying
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Coldwell Banker | Global Luxury
Investing In Property: San Francisco Edition
A Comparison of the Average $ per Sq. Ft. Between Major Cities 2020
Median Price for a Home in San Francisco 2000-2020
Why Is San Francisco Still Worth It Today?
San Francisco Headlines: What the Media Shows
San Francisco
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+16%
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+50%
Reality: The Current Market
More demand than product:
- Ongoing inventory shortage
- Bidding wars
The SF job market is vast:
- Stock market boom during pandemic
- Back to the office
- Consistent job creation
- Exodus created by media did not actually happen
More demand than product:
- Ongoing inventory shortage
- Bidding wars
Profit From an Investment in a San Francisco Bay Area home is Higher than Elsewhere
Benefits:
- Location, Location, Location
- The beautiful California weather
- The proximity of the water and beaches
- The proximity of the mountains and skiing
- #1 Business Center (The Silicon Valley, Biotech)
- Safe area for families
- Attractive area for entrepreneurs
Investment Road Map
Financial Preparation
Research and Analysis
Property Selection
Financial Preparation
• Understand Your Budget
• Talk to a Couple of Banks
• Get Pre-Approved
• Compare Rates & Terms from a Few Banks
• How Much Cash for a Down Payment?
• Appraisal Process
Research & Analysis
• Visit, Visit, Visit!
• Be Prepared: The San Francisco market has been expensive!
• Contemplate your Competitive Advantages:
- Are you willing to take a risk?
- Are you willing to take on a small construction project such as remodeling a bedroom or bathroom?
Understanding the Pricing Strategy
• Trust your Realtor
• Conduct an extensive price analysis
• Find market comparables
• Determine the average price per square foot
• Research the competition
Learn How to Read the Disclosure Package
• Disclosure packages can exceed 400 pages!
• Read the most important pages first
• Understanding inspection reports is key
• Study the forms filled out
Timing
• The Market moves quickly
• Homes typically sell within 10 days of going on the market
• A faster sale almost always means a higher price
• If property on the market for more than 2 weeks it starts to get stale
• Closing 30 days – finance
• Closing in 5-10 days – cash
