We found this great 2,660 sqft 2-unit in this fantastic Cole Valley location. It's definitely a fixer-upper, but see what you can do to remodel it and achieve a potential $1M+ in value.
This is a fine example of how to realize your dream home. We represented our clients in the purchase of their condo. We found one that had a great layout and the right square footage and number of bedrooms/bathrooms that matched our clients needs. However, cosmetically, it was outdated - the kitchen, the bathrooms, floor color, light fixtures were all an 80s decor.
Initially, they didn't consider the property at all because it was outdated and not to their taste. So, we helped them see that what they didn't like could be addressed. We could negotiate a favorable purchase price and use the savings to remodel their home to their own aesthetic.
The Kitchen Remodel
Our clients wanted a sexy looking kitchen that also wouldn't blow out their budget. We made the countertop the focal point, using imported Black Panther Quartzite, and extended the counter with a full waterfall and backsplash. We went from a 26" to a 30" unique black Blanco sink and state-of-the-art Hansgrohe faucet. To be within budget, the cabinet doors were replaced with a cool gray slate color versus completely demo'ing the cabinets entirely. To save space, we built-in the trash/storage and under-the-cabinet LED lighting. The fun part was that the clients got to choose their own hardware for the cabinet doors and appliances.
In addition to the kitchen, we also restained the floors, replaced all of the cabinet doors in the bathrooms to match the kitchen, and replaced lighting throughout.
See the before and after of the kitchen in the following video.
I'm often asked by buyers: what are the typical closing costs I'll incur? Here's a link to a quicky overview with details on each type of cost.
There have been an increasing number of Tenancy in Common (TIC) properties for sale in San Francisco and other parts of California, such as Oakland/Berkeley. TICs offer both buyers and multi-unit sellers some great opportunities in a very competitive market.
Read on below to learn more.
What is a TIC?
A TIC offers two or more buyers an opportunity to co-own a building. When you buy a TIC, you do not own the unit. Instead, you have a percentage stake in the entire building along with other people who bought the other TIC units in the building. For example, if you own a TIC in a 4 unit multi-family building, you will likely own close to 25% of the entire building’s title, not the unit itself.
Within the TIC agreement, co-owners are allocated interest in specific areas like their unit, parking, the yard, common areas and amenities. They also share in group expenses for the building, including building insurance, property taxes, maintenance, improvements to common areas, and shared utilities like water and trash.
Key Buyer Benefits
Since not a lot of people know about TICs, they become great opportunities for a knowledgeable buyer to purchase one at a lower price - anywhere from 5-10% less than a condo in San Francisco - with less competition. This allows new buyers into a highly-competitive market.
The hidden value of owning a TIC is that it can be converted into a condo, which increases your home’s value and yields a higher market appreciation. Specifically, if you buy into a 2-unit TIC property and each co-owner owner-occupies their unit for 1-year, it may qualify for a fast-track condo conversion.
Key Seller Benefits
Some property owners with 2-4 unit buildings could sell quicker and at a higher price if they sell each unit as a TIC versus trying to sell their whole building to one person. This makes each unit more desirable and affordable for more buyers. Not as many buyers can afford the entire 2-3 unit property.
For example, one of my clients owned a two-unit property. One was a Victorian in front and the second a bungalow in back of their property. The property as a whole did not sell for 3 months at the market price. As their new realtor, I strategized to split the property into 2 TICs and ended up selling each of them within 14 days at over asking price.
Getting a Mortgage for a TIC
I’d say that the #1 caveat for buyers is finding the right lender. Because TICs aren’t available everywhere, the number of lenders are limited as well. TIC lenders offer “fractional” mortgages, which allow co-owners to have individual mortgages - substantially decreasing the risk of co-ownership. The interest rate for a TIC loan is typically a quarter to a half a percentage higher than the market rate.
The important thing is to work with a realtor who has years of experience and understands the nuances of TICs. He/She should be able to find the right lender, and there are some great ones out there.
Definitely consider that next beautiful TIC you come across. Connect with me to further explore the benefits of a TIC ownership. I’ll get to know your needs and wants, update you on the San Francisco real estate market, and direct you to the right lender. My job is to get you ready to make the winning offer.
Another sign things are getting back to normal, open houses are back!
If you’re in the market to buy a new home, you can now tour it without an appointment. But, it’s not going to be exactly the way it used to be.
The California Department of Public Health announced last week that in-person showings of properties, like open houses, can start back up again, given that proper safety protocols are followed:
Showings must follow proper protocols:
Should you continue to work with your realtor? While open houses are a great way to view a property at your leisure, the advantage of viewing it with your realtor is to make sure there's a is a good fit with your objectives and fully understand the pros and cons of the specific property.
Take a tour with San Francisco homeowner, Michael Pham, as he reveals the details and luxury finishes that make his home so special. Be sure to look for the list of all the products he adores at the end of the video.
First-time home buyers Fiona and Nathan speak out about what makes for a great experience working with the right agent.
Take a fun tour with first-time home buyers in San Francisco.
Juliette works with many buyers, and most want to meet 100% on their checklist.
In this video, we'll show you how to plan to get this done by considering what the property already offers, as well as any future remodeling required. See how to visualize a remodel to get that dream kitchen. Check back in a week to see the start of the remodel and what is involved.
Juliette S Vo
San Francisco Market.