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Dilapidated shack in San Francisco sells for 408K

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D

Dalek

Member
http://www.sfgate.com/news/article/Did-the-S-F-buyer-who-scooped-up-a-dilapidated-6584073.php

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Anyone who pays less than a half-million for a house in San Francisco is getting a bargain, right?
Before you answer this question, consider a dilapidated, 765-square-foot shack that received six offers and sold for $408,000 this week.

In overpriced Noe Valley or in the heart of the Mission District where prices are surging, this two-bedroom, one-bath "beauty" built in 1906 would have been a steal. On hot Potrero Hill, a 752-square-foot home is on the market for $699,000, and will probably go for well over asking.
Click to expand...

The home is actually an earthquake shack. These tiny homes were built after the 1906 earthquake to house people who lost their residences. Many still remain around the city and have been restored, updated and remodeled (see gallery above). Yes, 16 De Long might have potential.

We don't have any details on the buyer, but Vanguard realtor Brian Tran sold the property and he says the owner, who hasn't lived in the residence for seven years, was thrilled about the selling price.

"I think the most notable part of the sale was that the owner of the home cried tears of joy when we presented her the offers," said Tran. "I have bought and sold many homes for our clients but this by far was the most touching."

Tran said he is helping the owner buy an investment property that will generate cash flow.

"She has worked so hard her whole life," Tran said. "she can finally relax and collect residual income."

San Francisco is recognized as one of the most expensive housing markets in the country. With the median selling price hitting $1.175 million, prices rose yet again in June, up 17.5 percent from June 2014.
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D

DoktorEvil

Banned
"I think the most notable part of the sale was that the owner of the home cried tears of joy when we presented her the offers," said Tran. "I have bought and sold many homes for our clients but this by far was the most touching."

Tran said he is helping the owner buy an investment property that will generate cash flow.

"She has worked so hard her whole life," Tran said. "she can finally relax and collect residual income."
Click to expand...

14m9teh.gif


Fuck you Tran. What "investment" does that shack provide?

Can she build up? Does she already have approval to build on the plot?
 
N

NervousXtian

Thought Emoji Movie was good. Take that as you will.
Honestly, the real winners are people next door who will have that piece of crap remodeled into something nice and their property values will rise another 20%.

DoktorEvil said:
14m9teh.gif


Fuck you Tran. What "investment" does that shack provide?
Click to expand...


I think they meant the old owner, ie: the seller is looking to buy an investment property to rent out.
 
F

Finaj

Member
The market SF has to crash eventually, right? The current increase in house prices just seems unsustainable.
 
P

pompidu

Member
The land is worth that, that shack is worth 0$. No idea how its possible that people pay those prices for so little. Is it jobs? City life?
 
P

PseudoKirby

Banned
Dalek said:
Tran said he is helping the owner buy an investment property that will generate cash flow.

"She has worked so hard her whole life," Tran said. "she can finally relax and collect residual income."
Click to expand...

this here is the problem, there are TOO MANY people set out on "making it rich" with real estate, its fucked everything up price wise.
 
L

Lovely Salsa

Banned
Isn't the average salary pretty high in SF?

Compare that to Stockholm where the average salary is 2400 euro after tax and the price is 9000 euros per sqm
 
Z

zashga

Member
I mean, they're just going to knock it down and build something new on the lot, right? That sort of thing is common in cities everywhere. Getting that lot for $400k is actually a bargain.
 
R

Raistlin

Post Count: 9999
Clearly the owner is going to blow it up and build a new house there.


In many places like San Fran, it's the property value that's exceptionally high. If you can get the land for (relatively) cheap, blowing up the house and building new can actually be a decent deal.
 
B

bjork

Member
That looks like the house from the episode of Alvin and the Chipmunks where Simon's time machine could see into the future. Alvin got food poisoning that weakened his voice so he never got famous, and so he and Brittany lived in a shack inbetween two buildings like that.

Also, on topic: what the hell.
 
M

M.D

Member
The buyer probably intends to build a house on that property and rent it, right? I mean why would you buy that tiny property and pay all the extra money just to build a new house, wouldn't it cheaper to just buy a normal house of that size?
 
A

Angry Grimace

Two cannibals are eating a clown. One turns to the other and says "does something taste funny to you?"
Just knock it down, get a zoning permit to bring it up to the height of the houses around it and you're making ridiculous amounts of money.

If you could guarantee that you'd get a building permit it probably would have sold for even more.

Raistlin said:
Clearly the owner is going to blow it up and build a new house there.


In many places like San Fran, it's the property value that's exceptionally high. If you can get the land for (relatively) cheap, blowing up the house and building new can actually be a decent deal.
Click to expand...

I think the story is that this isn't even necessarily a good area, its actually a shitty area that people are going towards because there aren't any other options.
 
D

DoktorEvil

Banned
zashga said:
I mean, they're just going to knock it down and build something new on the lot, right? That sort of thing is common in cities everywhere. Getting that lot for $400k is actually a bargain.
Click to expand...

765-square-foot shack that received six offers and sold for $408,000 this week.
Click to expand...

$408,000/765= $533.33 per sq/ft.

I dunno...

Does the new owner have permits and approval to build up? NIMBY-ism is a thing.
 
N

NervousXtian

Thought Emoji Movie was good. Take that as you will.
M.D said:
The buyer probably intends to build a house on that property and rent it, right? I mean why would you buy that tiny property and pay all the extra money just to build a new house, wouldn't it cheaper to just buy a normal house of that size?
Click to expand...

Nope, not in SF.
 
A

Afrodium

Banned
Lovely Salsa said:
Isn't the average salary pretty high in SF?

Compare that to Stockholm where the average salary is 2400 euro after tax and the price is 9000 euros per sqm
Click to expand...

The average salary is high because well paid tech workers are moving in. Unfortunately, a city needs people who work outside of tech to function, and SF is becoming uninhabitable for people who, say, teach or work in the service industry.
 
S

Slayven

Member
Going to be interesting the next few years. I can see a good amount of tech people willing to take a pay cut and move to texas or other places where they can scratch their ass and not have their 9 roommates see it it.
 
M

MiniBossBattle

Member
lazygecko said:
You could probably buy something with significantly better condition for a nanofraction of the price in Detroit.
Click to expand...

But then you are in Detroit. You can live in a beautiful house in an abandoned neighborhood with no police, water, fire or places to eat/shop at.

Its the location and with a rebuild, its worth twice that.
 
D

DrGonzo615

Banned
I used to have a very high opinion of SF, but then I moved to the Bay a few years ago and well....SF is a very stupid stupid place.
 
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