There’s so much to love about living in San Francisco. Famous as a Pacific Rim Financial hub, proximity to Silicon Valley, “air conditioned climate”, ocean sunsets, elegant Victorian homes, great food, boutique retail, excellent transportation and amicable people who love living here. California has much more to offer; Pacific Coast, surrounding Bay Area, Sierra Mountains, and welcomed diversity that come together to make California both a dream, and a place anyone can call home.

The truth is that California continues to be the “Land of Opportunity”. Yet, it’s always important to weigh your options. Read on to learn the pros and cons of purchasing property in San Francisco and Greater Bay Area.

Pros of Living in a Home in San Francisco

Because San Francisco and California have so much to offer our real estate market is one of the most expensive to buy in the country, which is exactly why you really need to be prepared. Here are 4 noteworthy advantages of purchasing a home in San Francisco.

1. Residential property in San Francisco can be perfect for growing families.

San Francisco is one of those extraordinary cities in America. And don’t get me wrong, it’s actually not just me. In 2019, San Francisco was named one of the top 10 most beautiful cities in the world. Solid public education, parks and open space, museums, art, easy transportation, neighborhood services make it a great place to live.

With approximately 875,000 people calling the city home, it’s very easy to see why living in San Francisco simply feels fun!

2. There is always something to do in San Francisco

San Francisco is one of the most culturally rich and diverse cities in the country. Check out the San Francisco Chronicle weekly “pink section” for free and fun events. Theatre, ballet, concerts and open space, The City supports a lot of infracture so you never really have to leave.

For a family summer outing, take public transportation to The Bay or to Golden Gate Park, a museum and the beach.

3. Great City to Build Equity

San Francisco is only 7 square miles and property here is a solid investment. Located on the tip of the penninsula surrounded on 3 sides by water, San Francisco enjoys remarkable weather and steady appreciation year over year. In addition to location we have a strong employment base, solid economy and great climate. We are a serious destination in the international market of employment, real estate and finance.

Living in your home (investment) while building equity is a game changer. The “roots” you put down while developing personal and financial relationships through home ownership are enduring. These relationships open doors to credit as you learn how to build wealth through real.

4. Room to Grow

What really entices people to purchase property is that they actually get to call it their home. As you build equity you have more options including expanding your home or selling and buying as your needs change. Your home is place to enjoy and add value, a space to control and to call the shots.

Cons of Living in a Single Family Home in San Francisco

As with any major city, San Francisco has issues all its own to take into account. Of course, no city is perfect, so it’s now on your hands to determine whether the positives outweigh the negatives. Would it be a wise decision to turn your California dreams into reality? Let’s examine 3 disadvantages of daily life in San Francisco.

1. Living in San Francisco is relatively expensive.

Yes, there is no denying that San Francisco is a very beautiful and breathtaking city on its own, we have previously established that idea. Therefore, there is no doubt that living in San Francisco won’t come cheap. San Francisco ranks first in Bungalow’s 2022 report of the 10 most expensive cities in the United States.

A disadvantage to purchasing in San Francisco was that it is more expensive. Since Covid, the communities close by have almost caught up to San Francisco prices. Detached properties often cost more than other types of properties, especially if you are choosing a larger home with useable flat yard.

Housing prices continue to rise due to several factors such as low inventory, lack of buildable land, and inflation effecting building materials costs drive the entry purchase price higher than a year ago.

You may find a fixer upper with an opportunity to improve the property and create value. You may buy a move-in ready house or condominium or something in between. Either way you are responsible for property taxes paid annually (in 2 parts) equaling approximately 1.2% of purchase price and you’ll want to protect your investment with reasonable maintenance.

2. More expenses…

According to the 2017 INRIX Global Traffic Scorecard, The San Francisco Bay Area had the fifth worst traffic in the world and the third worst in the United States.

3. More responsibility as a homeowner

Wealth building, quiet enjoyment and pride of ownership that comes through home ownership has a price. Real estate is not liquid. Our market moves slower than most other financial markets and transactions take longer because of lenders, mortgage pay offs and proper disclosure. I suggest to my clients and they understand property ownership is a minimum 18 month commitment. Mortgage, taxes, maintenance, fees, commissions and more make it unlikely they can break even in less than a year and a half.

The real question…

And so finally, it all boils down to the real question: is it worth purchasing a home in San Francisco? The answer for me is a resounding “YES”! San Francisco is a great place to live and work.

But, as the decision maker, you need to decide whether this is the right decision for your family and lifestyle.

That is why at Redmond Realty we recommend and perform an initial consultation. It’s important (up front) to have meaningful conversation about “what is important to you?” When we understand you and connect on values on the front end, the decisions on the back end as we approach closing become easy.

We want you to make real estate decisions today that you will be thrilled with in 18 months and beyond.

Ready to Set up a Trust? Talk to Us Today!

Undoubtedly, the advantages of putting your property into a trust outweigh all the conceived disadvantages. That’s why setting up a trust is the smartest, most cost-effective, and hassle-free option for you.

If you are interested in setting up a trust for your next real estate purchase, don’t hesitate to contact us! We have extensive experience with trust real estate transactions, and a wide bench of estate planning attorneys to help you find the right fit for establishing your own trust. At Redmond Realty, we tailor fit our solutions to your every need. To set an appointment, you can simply contact us. Through our confidential complimentary consultation, you can determine the best route for buying or selling your properties. Do you need more details and information? You can also call or text (415) 606-4484.

 

If you’re an executor, administrator, a buyer or interested 3^rd party, you probably know of a property being sold under the probate code comes with another level of scrutiny. These properties can be sold with court confirmation for cash or through “Independent Administration” including terms and can be a good deal because of fewer qualified competitors and/or restricted showings, etc. However, probate sales may come additional risks of little or no disclosure, tenants or family in possession and in the case of court confirmation tie up your funds and require more time ending with a potentially heated auction overseen by the judge.  A Court confirmed sale typically requires the buyer to pay all transfer expenses including transfer tax, title insurance and escrow fees.

What is a Probate Sale?

A probate sale involves a deceased or incapacitated party, who cannot convey title.  The property is not covered by a will or estate plan and needs to be sold to care for the individaul or proceeds to be distributed to the beneficiaries.

Before the transaction is completed, an independent administrator or estate attorney will list and sell the property. After which, the sale proceeds will be distributed to cover health care or to the heirs after all the obligations and taxes are paid. That’s why this can be a lengthy process since the court oversees the sale, approves the transaction and delivers clear title.

When Is Probate Necessary?

Many are surprised to know that probate isn’t always required to transfer property. If a property is held in trust or as “Joint Tenants with right of survivorship” you may avoid probate.  In California if personal property is valued below $200k it can be passed on to heirs and beneficiaries without probate. However, if an estate exceeds such value, then the probate process likely kicks in to appoint someone willing and able to convey title.

How a Probate Process Works

Selling a property can be an overwhelming process; how much more difficult is a probate sale? Since California is among the many states that hasn’t adopted the Uniform Probate Code (UPC), each county court has its own detailed process about the requirements, its contents, date of filings and fees. Here’s an outline of the probate process in San Francisco County Superior Court:

1. Getting Started

You can only begin the probate process an application for a probate case # at Probate Window on the ground floor of 400 McAllister @ Polk across from City Hall.  Once you are appointed as the official Executor/Administrator your responsibilities include:

• Filing a petition for probate in the county in which the deceased person was living at the time of death. You will also present the death certificate and original will in the probate court.
• Publishing a notice of the probate in a local newspaper following court regulation and mailing notices to the deceased’s creditors.
• Providing notice to beneficiaries and heirs as per the court’s requirement.
• Submitting any necessary documents to the court.
• Plan on ordering an independent appraisal at the time of death to establish basis for tax purposes.

2. Administering the Estate

Assemble a team you trust.  After an executor is approved, the property under probate code gets appraised. For a court sale, the probate referee will establish value (usually a “driveby low value”) to make confirmation easier.  At this stage, it’s best to hire a real estate agent to list, confirm value, help with disclosures, market, and attract written offers. If your agent feels the referee’s pricing is materially flawed, (too high) you may petition the court for review to expedite the sale cycle.  However, before one can even execute a sale, they must again petition the court, who is responsible to protect the estate, for permission to sell the home when at least one buyer has put in a contingent free offer.

The deceased’s heirs and beneficiaries will be notified about the sale; it can only move forward with the court’s permission if no one files an objection. In cases when there’s more than one offer, all interested buyers should appear in court to submit their bids and be confirmed.

Like in regular auction bidding, the highest bidder wins the property and this process can become heated and quickly end so come prepared with a strategy and limits that work for you. The successful bidder ideally hands over a cashier’s check for at least 10% of the offer price to the estate’s executor or submit cashiered funds to escrow within 24 hours of the court order to purchase.

3. Closing the Estate

Once the creditors’ claim period has lapsed, debts are paid, and the executor has already filed all the necessary tax returns, it’s time to distribute the remaining sum of the sale to the beneficiaries. To do this, the executor has to:

• Send a notice to the estate’s heirs and beneficiaries that the final hearing is coming up—the period in which the notice must be sent is identified by the court.
• Get the court’s permission to distribute the proceeds of the sale.
• After distributing the assets and all matters involving the probate sale have concluded, file receipts and ask the court’s permission to release the executor from their duties.

Should You Buy a Probate Sale?

It isn’t for everyone, especially for someone looking for a quick, hassle-free move-in ready home. However, if you’re keen on getting good deals, it’s best to check out probate homes which have to be sold regardless of condition and economic circumstances.

Many properties sold through probate sell for lower than their market value. Just remember that the process takes longer with less disclosure. That’s why it’s important to determine your priorities before considering a probate sale.

Aside from that, you also have to consider the property’s condition—are there tenant issues, do you need to make any major repairs on the home?   Probate properties are marketed and sold “AS-IS” with 10% non-refundable deposit once confirmed.  Even with an inspection, you might not notice some issues that would cost thousands to repair. At the end of the day, it’s up to you to decide whether the benefits outweigh the risks of buying through a probate sale.

Call/Text Us Now!

Before deciding on your next step to list, sell or buy, you can take a moment and talk to Redmond Realty, one of the most trusted real estate brokers in San Francisco. Discuss your needs with Tom today.

To set an appointment, you can simply contact us. Through our confidential complimentary consultation, you can determine the best route for buying or selling your properties. Do you need more details and information? You can also call or text (415) 606-4484.

Converting your home back to a house and selling the asset for cash is truly an exciting time in your life. It’s a great and easier time when your decision is clear and you are ready to move on to the next chapter of your life.  Many homeowners struggle with timing taking up to a year to decide to sell. Regardless of why you decided to sell your house, our Bay Area Market is strong and seasonality no longer a factor yet there are a number of pitfalls you can easily fall into which adding time, stress and likely affect your net proceeds.

But it doesn’t have to be the case. Be smart and organized about the whole process. Understand your values, needs and non-negotiables. With thorough planning and scheduling, you can certainly make things easier; but it’s still possible to make some mistakes!

That’s why we’re going to explore some of the most common mistakes made when selling a house. More than anything, we’ll also share tips and tricks you need to know so you can avoid them as you go forward.

1. Not Working with A Realtor

Did you know that less than 10% of homes listed for sale by owner (FSBO) actually sell? Those are terrible odds, and if you’re one of the lucky ones, you might still experience a lot of drawbacks by going FSBO.

There are tons of reasons why FSBOs fail in real estate. One of the most glaring ones is the lack of expertise and experience. Many FSBO sellers egos gets in the way of selling for top dollar.  You might save up money by not paying 5% or 6% commissions, but get destracted when it comes to capturing your very important 94% or 95% of proceeds.  The subtletles of negotiation can be missed on the inportant terms of timing inspections and disclosure.

Here are the five most common reasons why not working alone is the number one mistake you can do:

• You have problems w personalities, distractions and missed opportunities at showings.
• You price your house wrong from stale websites.
• You’re not equipped with marketing strategies and follow up to reach your buyers.
• You leave money on the table by not negotiating with strength.

Well, the list could go on and on. That’s why it’s best to work with the experts.

2. Overpricing Your House

Knowing the right price for your property is the key to success. The price you want and the market value of your house. Of course, you want to make the most of your sale, so you want to price to be “up there”. Implementing strategies other than price can be the best way to get there.

You need to understand your home’s fair market value. Finding the sweet spot between asking too much or too little gives you more eyes on the property and a stronger position in negotiating your sale.

The first step you can take to determine how much your home is worth is utilizing an online calculator. This can give you a rough estimate of your pricing. Afterward, it’s time to meet with your trusted realtor in San Francisco to discuss the right pricing strategy for your home. With their knowledge and experience, you can come up with a good marketing price that will incentivize buyers look, tour and submit in offers.

3. Neglecting Home Renovations and Repairs

You need to make a lasting 1^st  impression on potential buyers so they remember your house. Obvious deferred maintenance issues will cool top dollar retail buyers.

That’s why it’s important to make some renovations and repairs before listing your property. If you don’t have the cash flow to fix every issue, consider prioritizing the most glaring ones and follow a home maintenance and repair checklist. Think about anything that a home inspector will likely discover during the inspection and have it repaired. This way, you will retain your home’s value and increase the chance of selling your property quickly.

You can also go above and beyond by making some aesthetic changes that will attract your target buyers. However, always be careful in making any renovations; some homebuyers prefer to make their own renovations to personalize the space. It’s always important to consult with professionals and know where to start and stop on budget for maximum return.

4. Limiting Showings

People seldom buy when they havn’t toured the property.  Some will buy online but most will not.  Prepare to adjust your schedule for access—even if it means scampering out at dinnertime for a private showing or leaving home for a weekend open house. Always remember that the goal is to accommodate as many buyers as possible to genetate the most offers. Plan to cooperate with your agent whose job is to show your home.

If your house isn’t easy to show, it’s extremely difficult to find the right buyers as well. While sudden schedule changes and planning might feel inconvenient, just focus on the end goal—a good return on your investment and a timely sale.

5. Underestimating the Costs

Many home sellers quickly assume that house selling is one of the best ways to quick cash. Selling your house comes at a cost, which can be as high as 10% of the sale price with repairs. Budget on 7% of total sales price excluding repairs.  

Aside from that, you also have to think about the costs involved to relocate.  If you sell your old house without a new home, you may have to rent a temporary place. On the chance that you’ve purchased a new property, you might also have to pay for both mortgages as well as other carrying costs, such as utilities, HOA dues, taxes, and storage.

Ready to Sell Your Homes? Talk to Us Today!

Selling your home is definitely a major life decision. Steer clear of these classic mistakes, and you will close your sale faster and easier than you’ve expected!

At the end of the day, you want the process of house selling to be as stress-free as possible. Now that you’re aware of some common mistakes to avoid when selling your house, you can feel more confident with the whole process! If you need a reliable and top realtor in San Francisco, Redmond Realty is here to help!

As one of the top real estate companies in the Bay Area, we offer valuable solutions on a confidential basis to optimize your home selling experience. Our real estate agents in San Francisco ensure that the process of selling a property, buying a property, or exchanging property is value driven and a decision you will be glad you made in the years to come.

When it comes to home sales, buyers and sellers usually sit on the extreme opposites. Sellers want to get the most out of their property while buyers are on the lookout for the best value. But at the end of the day, both expect one thing in common: a successful transaction. While sellers and buyers have different needs, both sides will significantly benefit from hiring a real estate agent in San Francisco. Seasoned agents are ready to take their client experience up a notch by providing market insight and time saving technologies that make the whole buying/selling process relatively stress-free.

If that’s not enough reason for you, here are the top five reasons hire an experienced real estate agent.

Real Estate Agents Offer Convenient and Reliable Support.

Finding the right property is extremely challenging. Unfortunately, the process can take a ton of time. You might also have difficulty when it comes to reviewing and understanding the documents involved in a real estate transaction. And that’s normal!

However, you need a general understanding of how the market works, whether you are buying or selling a property. If you don’t want to waste time a real estate agent will help.

Real estate agents streamline the process of buying/selling a home. You won’t have to worry so much about completing the paperwork because agents and their brokers are responsible and are insured with errors and omission insurance. More importantly, its their fiduciary responsibility to be on top of all the purchase/sale agreement and disclosures involved in your sale. Think about this: you can avoid “leaving money on the table” with the help of a real estate agent in San Francisco and Greater Bay Area.

Agents Help You Get More Value for Money.

Are you contemplating selling the house by yourself, “FSBO” (For Sale By Owner) when listing your home? Just a caveat: you might lose more money by going down this route. When you do quick maths, it’s easy to assume that you’re getting more money without paying for extra commissions.

However, a 2022 report showed that FSBO listings earned up to 30% less for their owners than agent-listed properties. So, how is this so? Well, there are a lot of things to factor in when pricing your property. Unfortunately, most homeowners don’t understand how the pricing market works, so they can price wrong, accumulate days on martket end up selling their properties for  less as it is prcieved as “stale”. Remember that while you’re not paying listing commission, you only save acouple points as you’ll likely to have to pay a commission if the buyer is brings their agent.

As a property seller, it makes sense to enlist the help of a San Francisco realtor and focus on the 95% proceeds and not 5% commissions, your property will sell faster. But, how about for homebuyers? Hiring will expose you to more properties and thorough disclosure leading to an informed decision and successful transaction.

Agents Ensure Everything is Taken Cared For.

San Francisco Bay Area real estate has generally been a seller’s market for a long time, yet every block offers an informed buyer an oppritunity. One of the best benefits of working with an agent is CONSISTANCY! With a professional by your side, you can gain consistant data as you learn the market and piece of mind knowing that everything is taken care of.

So, whether you’re a buyer or seller, your real estate agent has always got your back. They have your best interest in mind. Their “fiduciary” responsibility to their clients is the highest standard of confidentiality.

With a real estate agent by your side, you’d be informed and advised whether any requests for information is legal and reasonable. In an FSBO deal, you’ll have far fewer and limited options.

Agents Know Where and What to Look For.

In this hot Bay Area Market, it’s truly difficult to find a nice and affordable property that requires less maintenance and repairs. The best thing about agents is knowing where to look for your desired property.

An experienced real estate agent in San Francisco knows to be on the lookout for any issues that might not cross your mind, dry rot, roofing problems, mold, and even neighborhood problems. They can easily spot the telltale signs of these problems and know the best ways to handle them. With that extensive knowledge and experience, you can save thousands of dollars down the road.

The great way to confirm value is by doing comparative market analyses; this task is what agents do best. They can send well-researched, current, and statistics-backed data about your neighborhood’s demographics, schools, and other essential factors affecting your property’s pricing. All this alone can take up a lot of your precious time. That’s why it’s best to trust the professional to do the heavy lifting.

Agents Are Great at Negotiating Deals for You

Real estate agents are excellent negotiation sharks. Remember their fiduciary responsibility towards you whenever you’re in doubt about how they negotiate deals. It’s always your agent’s job to get you the best possible price and terms with your transaction.

Agents are trained to negotiate on your behalf. Most importantly, they know the market and have tried-and-true techniques that work for you to get better leverage when you prepare to write or accept an offer.

Make A Smarter Choice, Hire A Real Estate Agent In San Francisco!

There’s no doubt that some people are qualified to sell their own homes. But do the rewards outweigh the risks? Selling/buying your own home without the help of a professional might sound smart but may be short sighted.

To echo Henry Ford’s words: Surround yourself with people that know more than you. One does not need to be able to do it all – one does need to know how to get the task at hand accomplished.

It’s always better to make the smarter choice and avoid any costly mistakes because selling/buying a property is definitely not a simple process. When you get into a difficult situation, it always pays to have a professional you trust who can help and guide you.

Do you need a reliable and top realtor in San Francisco? Redmond Realty has got you covered! At Redmond Realty, we provide proven insights and valuable solutions for our clients. Our real estate agents in San Francisco ensure that the process of buying a property, selling a property, or exchanging property is easy and stress-free.