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Source : http://www.parascopesf.com/san-francisco-home-sales-by-district/
One of the first steps in designing an effective property marketing campaign is to analyze how buyers typically find the homes they purchase. It only makes sense to focus on those media and those efforts that grab the most eyeballs, generate the biggest response and create the greatest sense of urgency to see your home quickly—and write clean, strong offers. Ideally, one wants to orchestrate a multiple-offer scenario where motivated buyers compete with one another to buy your home—it is that situation or the perceived threat of that situation which generates the highest possible sales price.
Based on the chart below, it’s clear that the effort and money should go into comprehensive online marketing, including buying premier placement on the major real estate websites; on broker to broker marketing efforts, because a large percentage of buyers are still steered to listings by their agents; on open house advertising and presentation materials; and on efforts to reach the neighbors, which often includes a direct mail campaign.
As a foundation to these efforts, money is also well spent on preparing the home to show at its absolute best and on professional photography—since most buyers and agents will first see and evaluate the property through its photographs. Pre-marketing inspection reports can also be a smart investment. And it always makes sense to give thought to the buyer profile for your home—to whom will your property most appeal, and who is likely to pay the highest amount of money for it—as this can help tailor the home preparation efforts and marketing campaign to maximum effect.
The quality of the agent working on your behalf, his or her competence, integrity, work ethic, willingness to spend money on effective marketing, and commitment to your interests can make an enormous difference in the outcome of the sale of your home.
Median prices tend to mask large disparities in the prices of the underlying individual sales, especially in the case of larger cities. For example, San Francisco neighborhood median house prices range from $465,000 to $4,000,000, and there will be similar disparities in Oakland and San Jose. That being said, median prices can be useful to help show general appreciation trends, and to some degree, to compare home values between different areas. 2012 – mid 2013 was a period of rapid price appreciation just about everywhere on this map.
How buyers and sellers in San Francisco split the closing costs pertinent to the sale of real estate is ultimately decided in the purchase contract itself, but this list details how they are typically split in San Francisco County.
Very generally speaking, a buyer can expect that closing costs will run anywhere from 1% to 3% of the purchase price, the major variable being the loan points charged, if any, by their lender. Other than loan-related fees, the big costs for buyers are for escrow fees and title insurance, home inspections, the first year of hazard insurance and property tax pro-rations, if any.
For sellers, closing costs usually run in the range of 6% to 8% of the sales price, not including loan pay-off and any home preparation or repair costs. Typically, the largest seller costs are brokerage commissions and transfer taxes.
Here is the standard clause governing closing costs in the SFAR purchase contract (Revise date 10/09). Again, buyer and seller can agree to change how these costs are divided.
“PRORATIONS AND EXPENSES. The following shall be paid current and then prorated between Buyer and Seller as of Close of Escrow: real property taxes (based upon the latest information available regarding the assessed value of the Property and the applicable tax rate); bonds and assessments; Homeowners’ Association dues and assessments; interest on any loan(s) secured by the Property assumed by Buyer; premiums for any insurance on the Property assumed by Buyer; rents; and operating expenses. Security deposits and accrued interest thereon, where the law requires interest to be paid on security deposits, shall be credited to Buyer’s account at Close of Escrow. Buyer shall pay the escrow fee and title insurance premiums. Seller shall pay any real property transfer taxes. Buyer shall pay any Homeowners’ Association transfer fees and move-in fees. Seller shall pay any Homeowners’ Association move-out fees. Seller shall pay any prepayment penalty or other fees or charges imposed by lenders for loans being paid off through escrow. Unless specified in this Contract, all other prorations and expenses shall be paid by either Buyer or Seller in accordance with local custom. Buyer and Seller understand that the Property will be reassessed upon change of ownership. A supplemental tax bill will be sent to Buyer which will reflect a change in property taxes based on the Purchase Price becoming the new assessed value. Any tax bills issued after Close of Escrow for periods of time before Close of Escrow shall be paid by Seller.”
The information below is from the website of the San Francisco Assessor’s office, as of April 2013:
Property Taxes in San Francisco
Under State law (Proposition 13), real property is reappraised only when a change-in-ownership occurs, or upon completion of new construction. Except for these two instances, property assessments cannot be increased by more than 2% annually, based on the California Consumer Price Index. The property tax rate is 1% plus any bonds, fees, or special charges.
What is the Transfer Tax Rate for the City and County of San Francisco?
If entire value or consideration is:
More than $100 but less than or equal to $250,000, the tax rate is $2.50 for each $500 or portion thereof;
More than $250 but less than $1,000,000, the tax rate is $3.40 for each $500 or portion thereof;
$1,000,000 or more but less than $5,000,000, the tax rate is $3.75 for each $500 or portion thereof;
$5,000,000 or more but less than $10,000,000, the tax rate is $10.00 for each $500 or portion thereof;
$10,000,000 or more, the tax rate is $12.50 for each $500 or portion thereof.
Selling residential real estate in the San Francisco Bay Area is a complicated financial transaction involving many important issues: home preparation, pricing and fair market value, comprehensive marketing across a wide variety of media, buyer profile and buyer qualifying, contract negotiation, showing the property, statutory disclosure of the property’s condition and circumstances, buyer due diligence, appraisal and financing and liability management. Doing these things well can make a huge difference in time and money.
Below is a simple graphic that outlines the process, followed by a detailed step by step description from the first consideration of market conditions to having the proceeds of sale wired into your bank account. It’s relatively self-explanatory, but will make even more sense when reviewed with your agent, who can explain the decision points along the way and the strategies and options you will have at each step.
Preparation & Marketing
Property Showing & Offer Review
Offer Acceptance, Contingencies of Sale & Close of Escrow
