Transaction Info

The Days on Market Trap

Posted on Patrick Lowell

Sellers, I hate to break it to you, but you don’t ultimately decide what your home is worth. The market does (if you let it). Days on market is the scoreboard that proves it.

So what exactly is days on market (DOM)? It’s simply the number of days your property has been actively listed for sale. Here’s what many sellers don’t realize: that number follows your listing around the internet. It’s displayed on MLS and most real estate websites while your home is active, and it often remains part of the property’s listing history long after it’s taken off the market or sold. Whether you’re selling a home in San Francisco or in Healdsburg, buyers and their agents definitely take note of days on market.

Every day that your home sits unsold beyond those critical first few weeks can chip away at your negotiating power. Buyers and their agents begin to wonder what’s wrong with the property and how they can leverage the higher DOM to get a better deal.

Once a listing starts to age, you’re no longer competing solely on your home’s merits. You’re competing against its history and the expectation that a price reduction may be coming.

This is where an experienced listing agent earns their fee. My job isn’t to tell you what you want to hear. It’s to read the market, whether that’s the fast pace of San Francisco or the more seasonal rhythm of Sonoma Wine Country, and help you arrive at a price that encourages strong buyer interest from day one.

A smart seller doesn’t fight the market. They let the market bring the price.

I know that can feel uncomfortable. But here’s something many sellers don’t realize: depending on the terms of your listing agreement, you’re typically under no obligation to accept any offer at any price.

Pricing strategically isn’t about settling. It’s about creating competition and giving the market the opportunity to speak to you. That’s how homes often sell faster, with stronger terms and, in many cases, for a higher price.

If you’re thinking about selling in San Francisco or Sonoma Wine Country, I’d be happy to talk through the strategy that makes the most sense for your home.

San Francisco Real Estate Transfer Tax

Posted on Patrick Lowell

Sellers have many things to consider when they prepare to sell their home or condo. One of the expenses that can surprise some sellers is the City & County of San Francisco Transfer Tax. This hefty tax is based on the sales price and is deducted from your proceeds by the escrow company. In transactions involving new construction properties, buyers are generally required to pay this tax.  (Updated March 2022)

How much can you expect to pay in transfer tax?

Here is the SF Transfer Tax Calculator

What is a contingency when buying a home in San Francisco?

Posted on Patrick Lowell

If you’ve been looking for real estate in San Francisco, you have probably heard the term “contingency”; it means “dependence on the fulfillment of a condition”. In the world of SF real estate, a contingency is simply a period of time in which the buyer can investigate a property or mortgage loan while still protecting their deposit.

Contingencies are sometimes used for property inspections like a termite inspection. Other contingencies are for mortgage loan approval, appraisal, or the sale of another property. Sellers can have have contingencies too, like finding a replacement property, but buyer contingencies are more common.

 

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In this very frenzied seller’s market, any buyer contingency can give the seller some pause when they are considering whether to accept an offer.

It can be challenging for buyers to protect their interests while still getting their offer accepted. As I’ve written about before, disclosures are important. Seller disclosure packages (complete with inspection reports) allow the buyer to be reasonably informed about the property at the outset before submitting an offer.

Regardless of disclosures, some buyers opt to roll the dice and waive all contingencies as a strategy to make their offer more attractive to the seller. Buyers should be aware that waiving contingencies is risky. As usual, it boils down to risk tolerance and of course every buyer (and every property) is unique.  If you are considering buying or selling, let’s talk about how contingencies might impact you.