I recently attended the Luxury Marketing Council of San Francisco’s event hosted by Gaul Searson showroom in the Design Center. There the Harrison Group presented their Annual Survey of Affluence and Wealth in America and summarized highlights from their recently published book, The New Elite…Inside the Minds of the Truly Wealthy.
It was an extremely informative presentation which I captured some of for your viewing. I hope you enjoy it.
New government mandated appraisal rules went into effect earlier this year and have quickly spread to becoming the biggest vulnerability of any transaction if not ‘managed’. The government now forces the banks to put all their approved appraisers in a pool and when your loan application comes up the draw one randomly out of the bin. Sounds simple enough ….unless you’re buying in San Francisco and your appraiser is from Modesto and has never been to San Francisco. Can you see the issues now?!
So, here’s the management techniques. Once you go into contract on a home if there is a lockbox on it the listing agent should take it off immediately to limit access. Secondly, when the appraiser calls to make the appointment with the buyers agent or the listing agent the appraiser will request a date and time. AT THAT POINT, the agent should say ‘well, I don’t know if I have that available. By the way, where are you from? Where’s your area of specialty?’. Once the appointment has been booked …YOU”RE STUCK with that appraiser. However, if there is no appointment made then a request for a new name can be made with the lender. This should be done until an appraiser with expertise in your location is booked.
At the appointment, the agent meeting the appraiser should show up with comps for the appraiser and HAND THEM TO THE APPRAISER.
These steps are key and could save your transaction. My good friend, Tawni, is going through ‘hell’ just to get a refinance due to appraiser hi-jinks with her lender. Even in a refi situation, the consumer needs to know the management techniques to keep their loan from going ‘South’.
All the Best,
Lance
415-793-6140
Days-on-Market and Percentage of Sales Price to Asking
Average Sales Price per Square Foot
The statistics for the 13 months ending in January show the luxury home market strengthening in Noe Valley. Days on market are down and the sales price to asking is up. The average price-per-square-foot has been holding steady so we’ll have to see what trend emerges when the numbers come out for February but from what I’m seeing on the street things are ‘holding their own’ currently. It wouldn’t surprise me to see a bit of an uptick in the price-per-square-foot based on the falling days on market.
I’ll keep you posted.
All the Best,
Lance
415-793-6140
1188 Lombard
An exciting week in Bagdad-by-the-Bay, I toured the Mediterranean Villa at 1188 Lombard which is nice but the owners’ art collection is fantastic. And, I thought it extremely interesting that he/she is moving into the Millenium Tower on Mission Street from this ‘oh-so’ upscale address on Russian Hill. Looks like they’re moving to where the ‘action is’. Good for them and good for the City.
1896 Pacific Penthouse Suite
I went through the penthouse 1 bedroom condo at 1896 Pacific asking $4,495,000 and was a bit confused by the floor plan but expect this one to go to someone as a peit-a-terre. It has great decks and views and would be a great party pad but I’m not so sure about that price tag. It’s a ’spec’ for a local stager. Only time will tell on the pricing.
465 Hoffman
Over in Noe Valley, the second house in less than a week priced at $3million plus has gone under contract. That just continues to show you the strength of the market on the South side of the City. This is also the area that is projected to have the biggest appreciation going forward from the reading I’ve been doing. Location, location, location which is attached to all those jobs down the peninsula and in the fast growing pharmaceutical circle around the UCSF Medical Research campus. Looks to me like the energetic center of the City is really shifting this time……if those hob-nobbers on the Northern Hills are leaving for the Southland with a Mission Street address you know something is different.
245 Randall
The lower end of the spectrum is moving too….245 Randall asking $799,000 had 7 confirmed offers on Tuesday afternoon. Woo hoo!
That’s a short re-cap.
All the Best,
Lance
