Misconceptions about San Francisco Real Estate Debunked
by qaz121 on November 19, 2020
Some people think that investing in US real estate is a “sure thing” or a “no-brainer”. But like any other investment, there is always some risk involved in real estate investing, and it’s important to do your research before investing. Another misconception is that you need a lot of money to invest in US real estate. It’s true that buying a property outright can be expensive, but there are many other ways to get involved in the market, such as through REITs (real estate investment trusts) or crowdfunding. Finally, some people think that they don’t need a visa or green card to invest in US real estate. This is not true – foreign investors must meet certain criteria before investing in real estate.
The US market is one of the most competitive real estate markets in the world when it comes to metropolises such as New York and San Francisco. For foreign investors, the San Francisco real estate market can be profitable, but there are a few things to keep in mind. First, prices are high and continue to climb, so it’s important to invest at the right time and price point. Additionally, San Francisco is known for its strong tenant protections, so it’s important to work with a local agent who knows the market well and can help you navigate these waters. Finally, it’s also important to note that San Francisco is a very desirable place to live and work, so vacancy rates are low and rents are high. Here are a few common misconceptions to be aware of if you consider investing in the San Francisco real estate market;
San Francisco especially the Bay Area is exclusively for the Rich
The presence of Silicon Valley coupled with the high salaries obtainable in the tech industry spins up a common-sense narrative that San Francisco is not a place for mid or low-income earners. Medium and small-scale businesses continue to thrive side by side with the big companies hence San Francisco is also a nice abode for mid-income earners. It is not uncommon to find neighborhoods inhabited by mid-income earners in San Jose, Oakland, East Bay, and even the San Francisco metropolis.
Sell the house yourself rather than involve an Agent
We live in an information age where it is fairly easy to access a plethora of information from an Internet-enabled device. Hence there is the feeling of homeowners believing they can save costs by going through the process of selling their properties without recruiting the services of a professional agent. Selling a home is not exactly the same thing as selling a car or any other gadget, because there are some processes that a non-professional may be unaware of which are yet important to comply with. Moreover, when prospective buyers are dealing directly with the sellers they may offer a lower price since they are dealing directly with the owner. Hence, the financial benefits of selling directly may be little if at all there’s any. Going through the professional route may seem unnecessary since you can just read up on the processes involved in property sales but I reckon that doing it the professional way is still a tad better.
Renovation before sale
This is a normal myth about real estate in most places and really it’s a good idea at face value. It is believed that renovating a house can quite raise the asking price of the house and this might be true in some cases. However, the issue with this is that renovating before a sale may not completely guarantee you a profit at the end of the transaction. Depending on the scale and magnitude of the renovation carried out, you may end up spending so much that the amounts offered up by prospective buyers may not completely compensate for the extra costs of renovation. This is just one aspect of the issue, the other aspect is that you are likely to carry out the renovations based on your taste and personal preferences. The issue now is that the taste of the next owner may not completely align with yours. For instance, painting a house with a particular color just before the sale may not necessarily excite the next owner as it may not be to their taste. If at all, aggressive renovations may potentially put some interested buyers off your property due to the way it was executed. If new paint isn’t something every new house buyer will appreciate, home security is a totally different story. At a low cost, you can get a new lock for the front door or fix broken window bars by using one of San Francisco’s many local locksmiths or simply ask a locksmith to inspect the property and sign an assessment with a cost proposal for the new owner to review. Anything you can do to secure the property is a great gesture appreciated by every buyer.
Spring is the best time to sell
This is not exactly peculiar to San Francisco but there is a misconception that spring is the best time to sell a property. This myth is based on the assumption that parents may want to switch locations so their kids can start school afresh in a new environment. Hence they may wait till spring before making the purchase. Interestingly according to research, a high percentage of home buyers tend to be young millennials who may not even be married. Hence the hypothesis about kids starting off in a new school is not exactly true. Anytime is good enough to sell or buy a house. The market is not always stagnant and its movements may be sporadic. Therefore if it was profitable to buy a property last spring that may not necessarily be the case for the next Spring. Other factors like the state of the economy and supply and demand may affect the prospect of property sale across different seasons.
Conclusively, information is key in the Real Estate industry. It is a capital-intensive industry hence the need to engage in due diligence in verifying the various misconceptions that may abound in the industry from time to time. Whatever the case, whether selling or buying a property in San Francisco, it is recommended that you get local services for anything you may need, locksmiths, real estate, insurance brokers, interior designers, and so on. There are a lot of things to consider when buying or selling a property and we have put together a collection of articles in our buy-and-sell category that will help you through the process.
