UrbanInsight Newsletter: Spring 2005

There was a time in the not-too-distant past when Bay Area properties sold at or near their asking price. Now, properties so frequently sell over asking, buyers often automatically assume a property will sell anywhere between $50,000 and $200,000 over list.

This practice throws the entire market into upheaval: sellers can only guess at an appropriate asking price, appraisers are challenged to establish comparable values, and buyers don’t know what offer price will actually get them a property. All of these factors create a market where no one can honestly guess what a property will sell for.

However, historical trends and market analysis can offer some guidance. Urban Bay Properties has generated detailed reports on this topic and analyzed the difference between list price and asking price for the past six years. Not only do we hope this may be of assistance when determining the final sales price of a property, we believe it is a strong indicator of the market’s overall health and vitality.

• In San Francisco, during the first quarter of 2005, properties that sold over asking sold an average of 12% over list price. Single family homes averaged 14%, lofts 11% and condos 10%.
• In the East Bay, properties that sold over asking sold an average of 7% over list. Single family homes averaged 7%, condos 6% and lofts 3%.
• While the over-asking craze is challenging, it used to be worse: During the height of the dot-com boom, in Q2 2000, properties sold an average of 20% over asking in San Francisco and 18% over asking in the East Bay.

We hope that this assists you as you buy or sell property. Note that this is generalized data – we recommend working with a licensed sales agent to determine how these trends directly affect your real estate transactions. We have other reports that provide more detailed information best suited to your needs. For a free analysis, give us at call in San Francisco at 415.546.3100 or the East Bay at 510.622.8300.

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