Properties selling for over asking is a common enough phenomenon in San Francisco real estate. But even to the jaded market watcher, the scale of these overbids is startling. Thanks to sparse inventory and an uptick in demand, S.F. homes sell for significantly over their list price on a daily basis.
Realtor Alex Clark, who publishes the Front Steps blog, makes the situation human: “My clients just got shelled by 16 other offers on 1761 Hayes, a top-floor, 2-bed, 1-bath condo in NOPA asking $849,000. We offered $1,051,000, and they accepted an offer that was ‘barely higher.’” (Check out Clark’s February “top overbids of the month” post.
What’s it worth?
Skeptics might say that over-bidding is the result of manipulative pricing. In an article showcasing strategies to induce bidding wars, one agent admitted, “We priced [a listing] intentionally to get multiple offers and sell quickly.” But sometimes these homes are priced not intentionally low but logically based on comparable sales. Logic doesn’t always play in home sales though, and buyers find this out when they over-bid past the point where the homes appraise and have to make up the difference in cash if they still want to buy.
With all this in mind, we bring you two San Francisco homes that recently sold over asking. You guess: which one sold for more over its asking price?
2546 Folsom Street
3-bed, 2.75-bath tenancy-in-common, listed at $829K in March and sold April 10.
191 Christopher Drive
3-bed, 3-bath, single-family home, listed at $939K in March and sold on April 9.
Readers, take your best guess: which over-bid house sold for higher over the asking price?
Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert