Purchased for $780,000 in 2013, the then 1,155-square-foot, two-bedroom Sunnyside home at 663 Joost Avenue was subsequently redesigned, expanded, remodeled and resold as a fully upgraded 1,725-square-foot, four-bedroom home, with a landscaped rear yard, deck and garage, for $1.7 million in September of 2020.
Having returned to the market listed for $1.849 million two weeks ago, a sale at which would have represented total appreciation of just 8.8 percent for the single-family home since the third quarter of 2020, the resale of 663 Joost Avenue has now closed escrow with a contract price of $1.74 million, representing total appreciation of 2.4 percent over the past two and one-half years on an apples-to-apples basis while the frequently misreported index for “San Francisco” single-family home values is “still up nearly 20 percent!” over the same period of time (but dropping fast).
Mid-Late 2020 is much different data point than early 2020.
Perhaps not as different as some might think, with the vast majority of the pandemic-driven squeeze, which is in the process of being unwound, having occurred in 2021 and early 2022.
It’s always puzzling how initial list prices and massive overbids aren’t considered relevant to the overarching narratives written on this website. Is it not worthwhile to also talk to consumers and buyers about how large overbids might play out after relatively short holds? Especially something like this. The 202K overbid from the 1.498M list price, and its 985 $/ft paid here, were indeed higher than similarly sized Sunnyside SFRs in September 2020. Like, 587 Mangels, not two weeks before, and bought for a 24K underbid. That had to be the closest comp. In fact nothing else approached this level of aggressive overbidding save one, 138 Flood. And that was a smaller home with a rather large potential upside to be captured just a block away from Sunnyside Elementary. Again, head scratching willful narration, this concept of overbid versus list price being nothing even worth mentioning. And yet, now there’s talk about pending price per foot, as well? Not credible IMO.
List price means nothing. It’s a tool to generate eyeballs on listing websites.
587 Mangels sold for $922/foot and has no backyard to speak of. This home sold for an even $1000/foot and has an expansive backyard. That sounds about right to me.
138 Flood sold for $1188/foot and appears to be a very mild overpay but nothing crazy, likely seduced by the expansion potential of the vast lower level garage, which was not included in that square footage. Sounds reasonable to me.
I don’t see anything out of the ordinary here.
Flatly saying “list price means nothing” is simply wrong. What is your knowledge base to say such a comment. Sometimes it is a tease price. Sometimes it is not. Always nothing? no. Mangels had a smaller lot. It also had conditioned space and no mention of “unwarranted” going on. The other sales that month also back up my take if you care to learn / know. I’d guess this buyer wa substantially out in front of the next closest bid. In hindsight, that matters.
Different agents and sellers have different strategies, yes. Most people who know what they are doing in the SF Bay Area, over the last ~11 year boom, list under the expected price to generate more offers. Looks like the folks selling this home did that, but perhaps the folks at Mangels went for the “transparent pricing” approach. Whichever their strategy, the actual sale price they landed on seemed to be comparable, so it’s a wash. Both strategies worked equally well in this very small sample size. I’m still not quite clear on the point you’re trying to make.
My point was quite clear. Sometimes large overbids bear mentioning in order to paint a full picture. That’s especially in a context such as this one, which is a) 2020 out ahead of what the market had been doing + b) 2023 sale after a relatively short hold.
Paying 13% over-asking is not a large overbid in this market, is not only common but is standard, and is thus not worth mentioning. It is especially not worth mentioning when the paid price is considered to be a very fair price. This is a non-story and the editor is correct in not mentioning it.
You say that, but it’s not the case. A 200+K overbid in Sunnyside was and is a big deal. Especially not back in September 2020 as the market was just coming back. Again, I’ll ask what your knowledge base is to opine thusly?
Doesn’t “large underprice” cancel out “large overbid”? I think that is what PhP means about the transparent pricing providing nearly the same result and is a wash.
I mean, yeah, it would. But I was in that specific market fall 2020 and 200K overbids were not commonplace. I remember this specific property as well. The result was surprising. The thing is, sellers and agents generally agonize over listing prices by and large. Putting that aside, I’ve yet to see anyone explain how pending price trend can be a thing yet list price cannot be a thing here in this forum. Think about it.
Honest question: Is your point that the editor is intentionally excluding the info about initial list/amount of overbid and that this infoh would partially negate the significance of the result here because the prior buyer overpaid?
Some people need to get a life….
cause posting on a website when you got four browser windows open is real time consuming, amiight ? heh.
More data points:
653 28th St, San Francisco, CA 94131 Sold Dec. 21 for $6M. Currently listed at $5M (after 2 price reductions)
166 19th Ave, San Francisco, CA 94121 Sold Oct. 21 for $4.1M. Currently listed at $3.7M (after one price reduction)
10 5th Ave, San Francisco, CA 94118 Sold Mar. 19 for $6M. Sold Nov. 22 for $4.7M
Well, 10 5th Ave was bought for 5.95M, gutted, sold for 4.563M in March of 21, then still gutted, sold again for 4.7 in November 2022.
Is my math off, or is this seller going to lose money, once the commission is factored in?
Also, second point: to the person who said 10% over asking is normal, I can tell you for sure, in Sunnyside, the comps do not support that view. I just bought in that district and the average over asking is 7% over the last few months.
What was the average over asking percentage in Fall 2020, which is the period under discussion?
I’m referring to this comment: “Paying 13% over-asking is not a large overbid in this market, is not only common but is standard” which I read to refer to 2023 (i.e., “this” market).
The underbid / overpay in discussion occurred in Fall 2020. I agree anything beyond April 2022 is a different market.
Could have been sold as a part of a relocation package where the company guarantees some home price so it’s not a loss.
Agents discussing the relative merits of disingenuous sales techniques is not entirely dissimilar to medieval monks debating the number of angels that can fit on the head of a pin.
Aquinas answered that. So put that phony little card away, bad writer.
“Disingenuous sales techniques” LOL
Two beers: Please remind us what your contribution is to the greater good?
How do you help other people and from what experience have you gained your infinite wisdom regarding the real estate market?
I am sure I am not alone in cowering under the blinding luminescence of your moral superiority.