I know SF is expensive but why do some try to get away? (San Francisco: affordable apartments, rentals)

[Need_affordable_home]

LOL lots of stories of people that wish they bought before the bubble. My dad could have bought an empty lot in our neighboorhood for $50k around 1998. He would have gotten $200k to $250k at the peak, a little less today. Not a bad investment for less than 10 years! Now its way too late to buy anything expensive. The rule is buy low, sell high. This is why I find a place like Oil city so appealing, prices are low!

[gizmo980]

Originally Posted by MoMark

Would you believe Need_Affordable_House that I almost bought a house near the Cow Palace (can't remember the name of the neighborhood...I'm forgetting my SF geography with the passing of the years and it used to be I knew SF like the back of my hand!) in San Francisco for $175,000 in early 1998? I seriously thought about it, but then decided I didn't like the neighborhood and bought in Pittsburg, CA. across the bay instead. Had I held onto that house and then sold before the crunch hit this past year, I'd have probably after capital gains taxes cleared around a 1/2 million $ Who knew!

The neighborhood near Cow Palace (Visitacion Valley, I believe) is actually pretty bad, right on the edge of Hunter's Point & Bayview - gang territory! But even so, you're probably right that it would bring in more than half a million. Frightening, isn't it??

[gizmo980]

Originally Posted by Need_affordable_home

I know, I was addressing my point to Zelia. He mentioned the same house for $100k in Kansas so I added that Kansas would be expensive compared to Oil city

Sorry, my bad... I guess Kansas is a more reasonable comparison than SF.

[MoMark]

Originally Posted by gizmo980

The neighborhood near Cow Palace (Visitacion Valley, I believe) is actually pretty bad, right on the edge of Hunter's Point & Bayview - gang territory! But even so, you're probably right that it would bring in more than half a million. Frightening, isn't it??

I think you're right, Visitacion Valley...just seemed kind of rough to me!

[NoCalHomes]

Gizmo is absolutely correct. Pricing can be outrageous in SFO, depending on the location, and there is a high chance that this property per se, might be overpriced. I have done some research on it and I am having a hard time locating it.

It is difficult to offer you other options have since there is no notation on what is exactly that you are looking for, nor the exact area within SFO that you are targetting. There are areas within the city that can be looked at and still have prices much more reasonable than what is mentioned for this particular one. On the other hand, this is a buyer's market. You are in a very advantageous position of negotiating and might be able to get a much nicer home for your money.

Oh BTW Visitiacion.. hmmmm

[Need_affordable_home]

Its the same story everywhere. Even in Oil city ive seen $100k houses that I wouldnt pay $33k for because I can get a bigger, nicer house for $33k! I dont know what those sellers are thinking. If theres something "special" about that location or house, I dont buy(pun intended) into it. Theres not really any bad locations in Oil city. There might be a part of Oil city full of rich people. But then if I was rich, id get a mansion, not some dingy tiny house!

[gizmo980]

Originally Posted by Need_affordable_home

Its the same story everywhere. Even in Oil city ive seen $100k houses that I wouldnt pay $33k for because I can get a bigger, nicer house for $33k! I dont know what those sellers are thinking. If theres something "special" about that location or house, I dont buy(pun intended) into it. Theres not really any bad locations in Oil city. There might be a part of Oil city full of rich people. But then if I was rich, id get a mansion, not some dingy tiny house!

What can I say? They ask what they can get... homes are usually priced according to the market, and most of the times they get what they're asking. At one time around here (particularly during the dot-com boom), it was typical to pay well above asking price! It just comes down to the old "supply and demand", like anything else. Some are obviously overpriced, for whatever reason - they either sit on the market forever, or the seller eventually lowers their price. I don't know much about real estate, but I know they aren't dummies!

[blurstar]

Originally Posted by Need_affordable_home

http://homepics.realtor.com/image2/http/sanfrancisco/listings/large/019/316590.jpg (broken link)


Sorry but this 1250 square feet "house" I found in SF arent worth nearly 1.1m! Does anyone see something special about this house? Someone buying in SF can get 1833 square feet given the average $600 a square foot and the house would not only be bigger but nicer as well!

The above is just an example of how some people dont know how to properly price houses. The error is found everywhere, but this example really stands out how little house you get for more than a million in hard earned money!

Why would anyone pay $1.1 mil for this shack? If I had the money I probably would. Here is how it works:

Pay $1.1 mil for this house, bulldose over it, then put in $600K to build a new 3000 sq ft home ($200 per sq ft), then sell the new house for $2.5 mil.

[Need_affordable_home]

Originally Posted by blurstar

Why would anyone pay $1.1 mil for this shack? If I had the money I probably would. Here is how it works:

Pay $1.1 mil for this house, bulldose over it, then put in $600K to build a new 3000 sq ft home ($200 per sq ft), then sell the new house for $2.5 mil.

The "land" or lot isnt big enough for a larger house. If you wanted land, buy a large empty lot instead. I already did the math in another thread and youd lose money if you bulldozed the house and build a bigger one(permitting lot room) Youd need demolation permits, construction permits and good luck at $200 a foot. If you want a nice house, youd be looking at $300-400 a foot to build because construction and material costs are very high in CA. You might break even if you are lucky but wasted all this time for nothing.

My dad knows someone who did just that and hes still sitting on the house, no one will pay his asking price. He might have to take a loss after all.

[blurstar]

Originally Posted by Need_affordable_home

The "land" or lot isnt big enough for a larger house. If you wanted land, buy a large empty lot instead. I already did the math in another thread and youd lose money if you bulldozed the house and build a bigger one(permitting lot room) Youd need demolation permits, construction permits and good luck at $200 a foot. If you want a nice house, youd be looking at $300-400 a foot to build because construction and material costs are very high in CA. You might break even if you are lucky but wasted all this time for nothing.

My dad knows someone who did just that and hes still sitting on the house, no one will pay his asking price. He might have to take a loss after all.

Obviously I can't argue with you on this specific case since I don't have details. But this is the reason majority of homes inside SF are so expensive. They are **** in current state but have economical potential.

You maybe able to find instances here and there, where high asking prices dont' make economic sense (this maybe one of them? I don't know), but by and large SF properties are highly priced for a solid economic reason in the prevailing economic condition.