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If you’ve mentioned that you’re thinking of selling property, you’ve probably received lots of advice from family and friends. While some of the advice might be helpful, not all of it is accurate. There are many myths and misconceptions that circulate when it comes to selling real estate, especially in a competitive market like San Francisco. It’s important to be informed so that you can avoid making costly mistakes. In this article, we’ll debunk four common myths about selling property in San Francisco and provide you with the information you need to make informed decisions.
1. You Should Price High Immediately
According to Money.com, setting an excessively high asking price for a San Francisco property can lead to negative outcomes. In fact, overpriced homes in the city often sell for significantly less than their original asking price. In 2021, the average discount off the initial asking price for homes in San Francisco was 5.8%.
According to a report from the San Francisco Association of Realtors, homes in San Francisco that require a price drop spend an average of 73 days on the market, while homes that sell at or below their original listing price spend an average of 39 days on the market. This highlights the importance of setting a realistic and competitive price from the start to avoid a longer time on the market and potential price reductions.
2. Selling As-Is/Making Major Upgrades
Selling a home “as-is” or making major upgrades before selling is a common myth in the San Francisco real estate market. While it may seem like a good idea, especially to those looking for a quick sale, this approach does not always lead to a faster or more profitable sale. In fact, according to a report by Homelight, homes that were sold “as-is” in San Francisco spent an average of 16 more days on the market than those that were not sold “as-is”. This means that while sellers may be able to avoid making costly repairs or upgrades, they may also have a harder time finding a buyer and closing a sale.
Furthermore, Remodeling by JLC it shows that the return on investment for major home upgrades in San Francisco is lower than in other cities, with an average of only 58 cents returned for every dollar spent on renovations. This means that even if a seller invests a significant amount of money in upgrading their home, they may not see a significant return on their investment. In a competitive market like San Francisco, sellers should focus on pricing their homes competitively, staging them effectively, and utilizing effective marketing strategies to attract potential buyers, rather than relying on major home upgrades or selling “as-is.”
3. Sell Your House in the Spring
The idea that spring is the best time to sell a home in San Francisco has been a longstanding myth in the real estate industry. However, this notion has been challenged in recent years as the city’s housing market has become more competitive and sophisticated.
One of the reasons why selling your house in the spring in San Francisco may not be the best strategy is that the city’s weather patterns tend to be relatively mild and stable throughout the year. Unlike other parts of the country where extreme weather conditions can impact home sales, San Francisco’s temperate climate means that buyers are active year-round, rather than just during the spring and summer months.
According to Zillow’s report, the inventory levels of homes for sale in San Francisco are typically lowest in the winter months, with an average of 1,194 homes for sale in January, compared to an average of 1,593 homes for sale in June, which is the month with the highest inventory levels. This indicates that there may be less competition for sellers in the winter months, and therefore, homeowners may have an advantage in selling their homes faster and at a higher price.
While spring and early summer used to be the most active seasons for home sales, experts now suggest that properties can sell well all year round. According to data from the California Association of Realtors, the number of homes sold in the city in September 2021 was higher than in any other month of the year.
4. An Agent add No Value
In the San Francisco real estate market, there is a persistent myth that homeowners don’t need an agent to sell their property. While it’s true that selling without an agent can save on commission costs, the data shows that working with an experienced agent can lead to a higher sale price and a smoother transaction.
According to Real Estate Witch, homes sold by agents in San Francisco tend to sell for a higher price than those sold by owners, with the median sale price for agent-sold homes being $1.5 million compared to $1.2 million for owner-sold homes. Additionally, agents are better equipped to handle the complex and ever-changing San Francisco real estate market, from marketing the property effectively to navigating legal and financial considerations.
So, while it may be tempting to try to sell your property on your own, the reality is that working with an experienced San Francisco agent can be more beneficial in the long run. If you’re thinking of selling your property in San Francisco, it’s recommended to work closely with a trusted agent to ensure a successful and profitable transaction. To learn more, contact me today at 415-830-1423.
