Sound Off: What are the pros and cons of waiting to make a major real estate transaction at the moment?



  • 93e6c 920x920 Sound Off: What are the pros and cons of waiting to make a major real estate transaction at the moment?

    Man and woman thinking about housing

    Man and woman thinking about housing


    Photo: Takasuu / Getty Images/iStockphoto

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Man and woman thinking about housing

Man and woman thinking about housing



Photo: Takasuu / Getty Images/iStockphoto


A: The volatility of the market and unknown length of this crisis has led to apprehension to invest in local real estate. However these factors have created an unexpected opportunity.

For buyers in the market, there now exists a unique and possibly short-lived window to put forth an offer with terms that a seller may not have considered just a few short weeks ago, and likely will not again once we have emerged from this crisis.


Real estate professionals across the Bay Area like our team at 181 Fremont are open and welcoming of the opportunity that this creates for buyers.

Unlike the 2008 financial crash, as the virus is contained, we suspect the recovery will be swift and San Francisco real estate will again be perceived as a safe and stable place to invest.



The Bay Area has benefitted from a solid job market fueled by blue-chip companies with significant growth potential.

Compounded by increased construction costs and a shortage in the new construction pipeline, San Francisco real estate will continue to be a very attractive investment option.

Tom Gasbarre, 181 Fremont Residences, 415-254-8389, tom@181residences.com.

A: Pro: The interest rates are very low many sellers are pricing at a price they want, and many are accepting contingencies. Run the numbers.


Con: Is this your dream home? Can you picture spending 10 years or more there? The answer s/b yes. Is your income source essential or stable? The answer should be yes. Is your lender tightening their lending requirements? Double check with your lender.


Pro: Do you need to right-size? Do you need a smaller home, a larger home, or are you wanting to move outside of the Bay Area? If the answer is yes to any of these, then this is the right time for you.

Con: Don’t be left with a moving van and no place to go. Consider a replacement property contingency if you are a seller. If you are a buyer who needs to sell their current home, consider a purchase offer contingent on the sale of your current home.

Anne Feste, the Grubb Co., 510-757-4787, afeste@grubbco.com.

A: Flippers buy dilapidated homes, fix them, resell them within a year or so for what they hope is a profit. Flippers comprise maybe 6% of real estate transactions. But the balance of the market, the other 94%, understands that real estate is a long term hold. In 2012 the median price of San Francisco homes was $750,000. By 2015 that median had risen to $1.1 million, by 2018 it was $1.715 million.


Despite the gyrations in the stock market, the high unemployment rate in certain sectors, people still want to change residences for the usual reasons: change in family size, marital status, job. Add to that a new found revelation: Working from home, at least partially, is actually possible. It is therefore not unreasonable to expect a shift from a smallish condo to a larger home, for home prices to rise once the current pent up demand is unleashed.

Astrid Lacitis, Vanguard Properties, 415-860-0765, astrid@vanguardsf.com.

Article source: https://www.sfgate.com/realestate-advertisement/article/Sound-Off-What-are-the-pros-and-cons-of-waiting-15165325.php

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