Lost Bid of the Week

Home in Silver Terrace

Home in Silver Terrace

Our real estate agent basically told us we were to chicken, because we get scared at unwarranted spaces and houses that need a ton of work. In our defense I personally cannot help but do math when I walk around homes. So we tend to bid super low because we know how much it would take to bring it up to market value. In this case it had all the recent work down without permits, plus the in-law didn't meet height minimums so you have to carve into the foundation, and the bathroom upstairs had no permits which meant if I wanted to update it with the city, or make an addition I have to deal with that and possible penalties. 

So bottom line we calculated minimum 200k of fixes to bring it up to legality and maybe 50-100 to bedazzle it to neighboring values.

Selling price $588

Bid price $625

Conclussion: We lost with no counter because there was 15 offers ahead of us. 

That's the way the cookie crumbles in SF. You compete with cash offers and people who have the money to make upgrades right away. The don't care that their heads touch the ceiling or that their house's are not attached to the foundation. It's to big of a competitive market. People are just trying to find a home, no matter what the future consequences might be. 

We were okay with this lost. We were just trying to test the SF Market.