Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

San Francisco Condo Market -- GREAT Deals for Buyers

Name: San Francisco Condo Market -- GREAT Deals for Buyers
Uploaded: 2023-10-29T01:00:25+00:00
Duration: 55 s
Channel: Austin Klar
Description: In this market‑update video, Austin Klar explains that the San Francisco condo market is offering unprecedented buying opportunities. He highlights a…

29 Oct 2023 · 1 min

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In this market‑update video, Austin Klar explains that the San Francisco condo market is offering unprecedented buying opportunities. He highlights a recent transaction where his buyer secured a new‑construction condo in North Beach for $100,000 less than the seller’s 2021 purchase price. Additionally, the seller agreed to fund a $40,000 temporary mortgage‑rate buydown, allowing the buyer to enjoy rates of 4.6% in year 1, 5.6% in year 2, and 6.6% in year 3, well below the current mid‑to‑high‑7% market rates. The lower rate reverts to market levels in year 4, at which point the buyer plans to refinance, betting on future rate declines. Klar notes the condo had been on the market for over six months, creating the buyer’s leverage. He concludes by inviting viewers who are considering relocation or need help navigating today’s interest‑rate environment to contact him.

Chapters

The condo market in San Francisco continues to present the most opportunity we've seen for buyers in a long time. I just got a buyer into this beautiful new construction condo in North Beach for $100,000 less than what the seller bought it for in 2021. And on top of that, we got the seller to pay over $40,000 to temporarily buy down the buyer's interest rate during the first 3 years of his loan. Prevailing rates right now are in the mid to high 7s, but in the first year of my buyer's loan, 4.6%. Second year, 5.6%. Third year, 6.6%. It doesn't go up to the currently prevailing rate for him into the sevens until year 4 of his loan. Idea being by year 4, when the rate goes back into the mid to high sevens, he'll be able to refinance because rates should be lower by then. But if they're not lower, if they're higher, then he's got a lower rate than he otherwise would've. This arrangement's not gonna be available for every condo out there. This one had been on the market for over 6 months and my buyer took that opportunity to strike. If you're thinking about relocating and wondering how to navigate today's interest rates, reach out to me.