If you’ve ever wondered how much over the asking price you’ll need to offer in order to purchase a competitive property in San Francisco, I have some data for you. In February of this year, the overall sales prices were an average of 8% higher (than asking prices).
- Single-family homes sold for 12% over asking
- Condos sold for 7% over asking
- 2-4 unit buildings sold for 2% over asking
What are the specific causes? There are two primary culprits; (1) lack of supply to meet the buyer demand and (2) Realtors underpricing properties in order to (try) to create a bidding frenzy.