Within 3 Percent of 2014 Pricing for a Chic Marina HomeApril 20, 2020
Having been further updated a bit since it was purchased as an already “perfected” home for $3.31 million in September of 2014, the recent resale of the “chic, light-filled marina home” at 22 Rico Way wasn’t perfectly apples-to-apples.
But having returned to the market listed for $3.495 million early last month, and in contract prior to San Francisco’s first stay-at-home order having been in place, the sale of the three-bedroom, two and one-half bath home – which “was beautifully designed with an ideal floor plan by Huang Iboshi Architecture” and features a sunny living room with a working fireplace, a spacious formal dinning room and a (newly) renovated gourmet kitchen (before) with verdant garden outlooks, as well as a tranquil master suite with a sophisticated master bath and a lower level family room which opens to the landscaped patio and garden – has now closed escrow with a contract price of $3.4 million, representing total appreciation of 2.7 percent for the single-family home since the third quarter of 2014 (not accounting for the value of the recent upgrades and net of any up and down between).
Comments from Plugged-In Readers
BOOM! 2014. That’s the sound of realtor’s and seller’s heads exploding all over the city.
Perfect location, flat block, SFR on an entire block of nothing but SFRs (see name link for street view), D10, ultra low traffic street, updated, move in condition, and they even tweaked an already perfect home with new countertops, new lighting, new backsplash. And this was before the lockdown and before the inevitable bankruptcies, business terminations and foreclosures that will result.
Do you hear that? That’s the sound of seller’s wallets closing. Go ahead and make your inevitable, pitiful excuses. 2014 is louder than anything you can try to say.
Wouldn’t it the buyer’s wallets that are closing? except – “Price is Right rules apply.”
I don’t think many here have said prices would be constant given a global pandemic. Forget years – how many square feet is this house? What did it sell for on a ppsf basis? Still well north of $1000 pages for a pretty nice house, right?
“I don’t think many here have said prices would be constant given a global pandemic”
Oh you’re mistaken there. Tons of realtors are pushing the party line that things are great, there’s never been a better time to buy, prices won’t drop, no competition so no bidding wars, etc. Also, take a look at the listings still on the market and the ones added recently. The asking prices are head-in-the-sand there-is-no-pandemic values from February and in some cases are even _higher_. I’ve basically had to tell my agent to stop forwarding me new listings because they’re all completely unreasonable.
[Editor’s Note: Price Reductions, and Increases, on the Rise in San Francisco]
I haven’t seen anyone here on Socketsite during this Covid chapter “the party line that things are great, there’s never been a better time to buy, prices won’t drop, no competition so no bidding wars, etc” Maybe that’s just me.
I hope that your agent was able to stop sending you those terrible e-mails. Market pricing is sometimes too stressful for people. Hope you are doing alright.
Speaking of “market” versus list pricing, and perhaps expectations versus reality, we’ll note that the median price per square foot of the homes currently listed for sale in San Francisco, but not in contract, is now around 12 percent higher than the median price per square foot of the homes for which contracts have recently been written.
@mary_jane_jacobs – See “3 years from now home prices will be even higher. Many of the large tech companies have stocks at or near all time highs, as of today. They are not firing people. They will only grow in power and importance. In fact, the fourth quarter GDP is expected to be higher in 2020 versus 2019, and if not, 2021 is supposed to be higher than 2019 as a whole.”
Realtors are stuck home like the rest of us. No sales means, no commissions means no income. So they are just cooped up with deteriorating finances and nothing to do all day but set the hype machine to 11 and burn up the phone lines and people’s email inboxes with cheery party line hype. Expect to see the same here on SS, a virtual army of bored and broke Realtors.
If “Tons of realtors are pushing the party line that things are great, there’s never been a better time to buy”
equates to one person saying in his/her/their/su/sus third paragraph,
“3 years from now home prices will be even higher.”
Then I stand corrected and I would cede this micro-aggression to anyone else who feels hurt by it.
I think you misjudge the venue: “here on SS, a virtual army of bored and broke Realtors.”
@tipster – your a little off about Covid 19 not impacting this as this did not list for sale until after the outbreak. It was also only shown via private showings (due to the resident being elderly and the pandemic) and there was not even a For Sale sign on the property. All that being said, prices have been sliding for a while. The real question is…Why are you so excited about that? Not sure I would get hard on about 2014 pricing in 2020. But whatever floats your boat I guess.
Elderly resident? I thought they bought it in 2014? Interesting time for a geezer to drop $3.3M for a SFR in the Marina.
I checked and Stevie is correct on the age of the owner, who was in her 70s. I also thought it was unusual that not only did she buy a big house with lots of stairs, but she even tweaked it from a decor standpoint that was already pretty current, when most homes sold by elderly owners are 40 years out of date. But she bought and sold lots of homes in San Francisco and appears to be very shrewd when it comes to SF real estate, and she also knew when to get out before her losses got too great.
What sold this home (and she knew would always hold its value when she bought it) was 3 independently-accessible bedrooms all on the same level, an almost unheard of layout at this price point in the Marina, a big enough yard to play in, with a family room on the same level as the yard, and a preposterously quiet street that is easy walking distance to the Marina Green, the Marina Safeway and the shops of Chestnut Street. She knew a young family would always pay a premium for those things, and she was right: she only lost about $85,000 on a 2014 buy, plus maybe $3.5K worth of improvements.
uh, but LOSING 88.5K is not holding its value. Are you including inflation, closing, and other oppty costs here?
“What sold this home (and she knew would always hold its value when she bought it) was 3 independently-accessible bedrooms all on the same level, an almost unheard of layout at this price point in the Marina”
What are you talking about? I have never heard of a residence in the Marina that did not have independently accessible bedrooms. That arrangement was well established by the 1920’s when the Marina was built. As for 3 bedrooms on the same level – that too was standard in the larger houses. Only the smaller – one floor over garage houses – may have had 2 bedrooms.
Was the owner actually (not just legally) the resident, or was this an investment property?
listed on March 9th? (and pending on the 13th?) –when the US had about 1000 cases and 300 deaths total and a week before we went to Shelter in Place in SF- which was early compared to the rest of the country. I think a lot of people did not think it was really an issue at that point.
But hey- the Fed is on QE infinity now buying unlimited amounts of all asset classes, so maybe they bail out all risk assets including housing once again.
This is insanity in the current market. My model predicts a value of $1.8MM for this house currently, which I think is optimistic. Either way, congratulations to the sellers for making out when they did.
Carlos, The property sold for $3,3 million 6 years ago. Why does your model predict $1.8?
Keep in mind that the property traded for $1.74 million in 2005. And that was prior to it being completely remodeled, renovated and effectively expanded (down).
Carlos does your ‘model’ think we’re in depression already?
Carlos, someone bought it for $3.4M – there’s your model and then there is reality.
Carlos spent too much time near the glue when he was making his model.
I love puns, and that’s a great one!
That’s a beautiful kitchen.
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