From the last five in August (and up to $230,000 off), to the last three today (and up to $350,000 off) at Heritage on Fillmore. Oh, and 4% to the brokers (not that a buyer’s agent should be influenced by such things).
∙ Heritage Fillmore: And Then There Were Five (And Up To $230K Off) [SocketSite]
Is that a real ad? My goodness. Final Encore? Is this somehow a way to appease the last ad that stated “Final Pricing”? Isn’t that “False Advertising”
For a second there, I was thinking “wow, 1400 sq. ft. for $820k on Fillmore St… not half bad.”
Then I looked at which part of Fillmore its on. Ew.
All I can say is that I feel sorry for whoever paid full price at this dump.
meh — still over priced for the neighborhood. how much is hoa?
This will hurt the other condo projects that aren’t anywhere close to sell out. Why buy today when you can get “Final Encore” prices tomorrow?
Next ad will be “Encore Overtime”
Geez, that’s an obnoxious ad. What’s next, Cal Worthington and his dog Spot doing radio and TV spots for these things? Maybe they can strap one of those enormous blow-up gorillas to the roof too…
Only 3 units left out of 68 market rate condos? I imagine the developer ended up doing okay on this project. These price reductions are going to hurt the resales that are on the market on some lower floors more then they hurt the developer.
Jimmy one question, do you think this particular building is a dump or that since it is in an “ew” neighborhood it is therefore a dump?
Phil – It looks like the hoa’s are around $467 for the 2br units. As for the price for the neighborhood at this point isn’t just about everything overpriced in every neighborhood?
I’m one of the owners in one of the lower units, and needless to say, I’m floored that prices have come down so much. Looks like I’ll be holding my unit for another 10 years…unless I lose my job.
The building is not a dump. It’s beautiful, and the units are spacious and nice. I also thought the ‘hood was “ewww” – but now that I’ve lived there for a while, I like it. Close enough to walk to Pac Heights, and easy freeway access.
It’s not nearly as ghetto as I thought…provided you don’t stray too far from Fillmore.
At $350K the 2/2, they should sell these places rather quickly.
Wait… must put sunglasses on to read the ad… What? $850K for a 2/2 in the “lower” Fillmore?
Wake me up when the prices make sense.
I really like the building. I could live here, very central, but I would wish it were near a subway line. The metal accents are nice, and the building is pretty handsome and a nice sandstone color. The area is actually pretty nice if you stay north of Turk st.
HOA of $467 is a mandatory payment that only goes up year after year. I wonder what percent the developer keeps, if any.
At least with property taxes, thanks to Prop 13, increases are capped, and if a property decreases in value, assessors might lower payments downward.
I’d rather spend the $467 on a bigger mortgage, because at least if interest rates go down, I can refi the $467 into a smaller payment.
HOA fees. Beware!
I forgot to mention that if the market value on these places does go down 50% and you’re forced to sell, the HOA fees will be almost 25% of the new buyer’s monthly mortgage payment (assuming HOA fees don’t increase and mortgage = 20% down, 30-year fixed @ 6%).
At current prices, the HOA fees are only about 11% of monthly mortgage payments (on purchase price $850K assumption).
It will be very difficult to sell a 2/2 when HOA fees are 25% of the mortgage (conservative estimate: assumes no fee increase).
Again, HOA fees: beware.
Yes, DataDude,
I am amazed at the level of HOAs in basic condos. What do they do with $450? And what’s the deal with developers getting some of the HOA?
The neighborhood is fine as long as you don’t care about Amici’s pizza delivery.
“Final ecore” — isn’t that an oxymoron?
BTW: I personally think Amici’s has the best pizza in the City, esp. since Za no longer delivers in my hood (or maybe they went out of business?).
I live in upper PH & often enjoy taking a long stroll to the Haight via Fillmore. There’s only one tiny stretch that I find really creepy any hour of the day & it begins about a block & a half south of this building. The folks who actually live in this neighborhood clearly have more authority about whether it’s actually as bad as it feels – but having walked through this area a few hundred times, I can say it feels pretty crappy. So if the feel of an area is important to you – or your prospective visitors – I’d say you can live in far nicer areas for this kind of cash.
I really like the building. I could live here, very central, but I would wish it were near a subway line.
Geary will have a BRT, much faster than it would take to build a subway line. Anyone know how the lawsuit between the self-styled “Geary Street Merchants Association” and the MTA is going?
Assuming that all brokers are motivated by money is a wee bit insulting, don’t ya think?
Perhaps some of us driven by bringing our buyers to quality residences at great prices. If we get 4%, so what? It’s win-win for everyone.
DealMaster – If you’re not motivated by money, then I’m sure you’ll be happy to waive the commission for your next client (or at least cut it in half). 🙂
Redfin will kick 2% back to the buyer. It’s my understanding that Redfin now provides all the same services as a traditional broker.
Even with the market the way it is, you kind of have to look at the original prices (1.2MM) and laugh. No way would anyone pay 1.2MM for a unit there. Would they? Or did they?!
It would be great if the editor would start a thread about HOA fees that would let knowledgeable posters contribute. The constant comments from posters who know nothing about them or continually post misinformation is tiresome….such as statements about developers keeping a portion, which is completely illegal. In fact, developers have to pay the fees on unsold units until the owners take over. And, it is a complete misconception that HOA fees never go down. Although a rarity given typical inflation, they can go down if a building’s expenses/budget warrant it. I have personally experienced this at least twice with condos.
One of the reasons the HOAs are a bit high is they are supposed to put sufficient money away in escrow to have funds available when repairs or remodeling become necessary. This has become a big issue since some large building HOAs in the City let things go and there was a crackdown that forced them to rebuild crumbling exteriors and attend to safety and access issues. The longer regular work is put off, the more expensive it ends up being. Paying for things like doormen and elevators is not cheap. This level of density comes with a lot of hidden costs.
seehsee — it is not uncommon for the developer to act as the management company for the condo bldg. As such, the management company (aka developer) can collect a fee.
Eddy: Agreed and understood. That would be a legitimate fee collected for services rendered. But this is not what DataDude implied in his posting (especially his closing comment “HOA fees: beware”) nor what is typical of most postings about HOA fees on this site. The general misunderstanding is that HOA fees are somehow arbitrarily set and that someone is profiting from a collected excess. Anyone who has been a condo owner and involved enough in association meetings and budgets would know about the research and projections that go into setting dues. Unfortunately those people tend not to be the ones posting about HOA fees.
Values are not going to come up in that building until the City demo’s the projects and that’s not going to happen anytime soon.