Saturday, September 23, 2006

1890 Jefferson

With fractional loans, TICs with more than six units are becoming more common. Circle Bank, after testing the water with smaller projects, is stepping things up with larger multi-unit dwellings. This new release features nine units in a prime Marina location.

Apparently four units are open this weekend; the rest of the building is still being renovated. (This explains the "reservation to purchase" statement. They are probably skittish about missing the fall sales window.)

Interestingly enough, this property is not on the MLS. When I phoned the realtor said she wants to work with principals (aka buyers) only. In other words - buyers with no agents.

Given that sellers usually pay all realtors' fees, that means prospective buyers should make sure the seller's agent is not double dipping on commission. (Without a buyer's agent to split commission with, the seller's agent should only be getting about 2-3% commission and passing a 2-3% savings on to the buyer.)

It also means buyers are on their own when it comes to due diligence, including pre-sale property inspections, assessing the market worth versus the asking price, negotiating the sales price, asking for concessions (like parking at no additional cost) and other mission critical items. In other words, if you are a first time buyer, or someone who isn't well-versed in the San Francisco market, you could be in for a a bit of a ride. It's not impossible to buy or sell your own property in San Francisco if you know the drill. But one should never expect a seller's agent to be working in a buyer's best interest.


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