In recent years, the real estate market across the country has undergone impressive and unpredictable changes. The market today and in the coming months is still being affected by the ripples of these trends.
Major cities have been massively impacted, and San Francisco real estate is no exception. San Francisco luxury homes and the surrounding real estate of the Bay Area are more coveted than ever before. One of the major trends around urban center real estate markets like San Francisco real estate has been the mass migration of people into the outer neighborhoods of metropolitan areas. People are looking for more space while still being in close proximity to the cities they work and play in. Since the Bay Area’s unique makeup accommodates this desire so readily without buyers needing to stray far from the city's center, houses are in extremely high demand. With Silicon Valley growing at a breakneck rate as well, San Francisco luxury homes are perfectly situated for a high population of buyers.
Luxury real estate agent Missy Wyant Smit offers a round-up of trends to expect in the San Francisco real estate market looking forward and helpful ways for buyers and sellers to navigate them.
San Francisco luxury homes are an extremely competitive market for buyers right now. If you are looking to buy a home in the area, you’ll need to really stand out in a large pile of offers. Before you even begin your search, make sure to get all of your ducks in a row. Prepare all of your financial documents and go through the process of getting preapproved for a mortgage if you require one. Everything about your candidacy as a buyer needs to be as strong as possible, so if there are any aspects of your history as a homeowner or financially that might present a red flag, you’ll need to take time to iron them out. Once your standing as a buyer is as perfect as you can get it and all of your materials are primed, you’ll need to find an agent who has a long history of buying and selling San Francisco luxury homes. Only an agent who knows the complicated market well and has been entrusted with these sales before is going to have the experience to negotiate at the level necessary to close your dream home.
Nearly 70% of homes on the San Francisco real estate market are selling above the asking price. This, unfortunately, means that an expensive market has only gotten more expensive and will continue to. When preparing your finances, know that the prices you’ll be paying as a buyer are going to skew higher than average. You’ll likely need to have more in the coffers than planned. If a cash offer is a possibility for you, it will drastically improve your chances of closing on a home sooner.
The average time a home stays on the San Francisco real estate market is very short. There are far fewer homes than buyers looking to purchase them, which sets up sales to move quickly. If you are serious about a home, there is no room to dawdle. Put in offers as soon as you are ready. This is another stage where the accessibility and drive of your agent matters immensely. Agents are handling a large roster of clients who are all hungry, so you want one that feels dedicated to you. Since there is always another application in the pile for a seller to turn to if the closing is taking too long, contract items like inspection elements and repairs might have to be forgone if you are eminently certain you want to close on a home.
If you’re a seller, the market is a dream to the buyers’ nightmare. San Francisco homes are selling high and fast, which is a luxury many sellers never get. Your home will likely require minimal preparation or construction to move in the current market. If you’re looking to sell at a profit, there is no better time than now. Selling right now is not only an opportunity if you’re looking to leave the area, but a smart investment decision.
Adjust your timeline
The San Francisco real estate market is a lot of hurry up and wait. The pace at which homes are being snapped up is only increasing, which means you may spend much longer than you previously intended looking for the right house. If your timeline for finding a house is dependent on a move for a job, the selling of a current home, or family matters, then you should be prepared for the search to affect these goals. This is another element of house hunting in San Francisco that is remedied by a skilled agent.
The San Francisco real estate market is experiencing a boom that is only going to continue. For sellers, that means that selling now could bring unexpected returns with relative ease. For buyers, the outlook is a bit more difficult. One of the reasons San Francisco has always been a hot market is because it is such a high-caliber place to live. The industries, culture, and natural landscape are rivaled by few other places in the country. Luckily, a dedicated agent will help you circumvent all of the obstacles the market entails and get you into your very own corner of San Francisco. If you are looking for the right agent to fight your corner, reach out to trusted local agent Missy Wyant Smit.