228-230 Liberty is a good case study!
As we all see today, San Francisco real estate values and prices are changing at record speeds. An interesting example of this is 228-230 Liberty Street. This property was on the market last year at $1,380,000 with tenants in each unit. The sellers bought out the occupants and put the property back on the market with an offer date. Offers were due February 17th at 5pm.
We had clients who were interested in the property and decided to present an offer. What is interesting here is that even in this market the value of certain real estate is holding. The value of Liberty Hill is there as evident by a total of 6 offers on the property. Some offers were on the low side and some were several hundred thousand over the asking price.
This is a good example of how the market sets the sales price, not the seller. There are examples of properties out there whose values and prices are not in balance. You see this in short sales, where previous purchase prices do not match today’s market. You also see and hear about the “deal” that someone got by writing the low ball offer. As agent, it is our job to help educate our clients as to the market value of property based on comparable sales.
If we can beat the market value with a low offer I have succeeded for my buyer. If I can out perform the market with a sales price, then I have succeeded for my seller. I know there are lots of theories out there and different ways of looking at things. But I think the best thing we can all do in the market is to choose property that has value to you! That way, whatever the market does you will be happy.