Property isn’t cheap, so when you can strike it lucky with a deal of a lifetime, then why not? A fresh-on-the-market San Francisco listing has people raving because of the low price tag. But is there a catch?
Massive Property Deal In Russian Hill, SF
In the quaint suburb of San Francisco lies Russian Hill. A wonderful neighbourhood suitable to a variety of lifestyles and communities, young and old.
Not Cheap Property
San Francisco isn’t the most affordable city in the U.S. and property prices range between $850,000 to $3 million or more. The median price for property in San Francisco according to Realtor.com is about $1.2 million as of May 2024.
What is the Median Listing for SF?
Realtor.com reported that the median per square foot listing was $962, but the property has sold for just over $1 million.
The House With the Bargain
The house listed at the low price of $488,000 is one-of-a-kind in many ways. In May 2024 homes in San Francisco sold for 5.4% below the asking price, according to Realtor.com
What Makes the Listing Unique?
The property is listed at Realtor.com and marketed by North Park Real Estate. The home is over 1,000 sqft with a lot of 3,200 sqft. The house has 1.5 bathrooms and three bedrooms.
It’s an Old Gem
The property was built in 1924 and is at least 100 years old.
What Else Does the Home Have?
The home boasts a discrete laundry facility in the garage, gas heating features, a fireplace, a backyard, and attractive curb appeal. The home also has a fenced backyard, paved driveway, garage, and outside parking.
The Terms and Conditions
Reports from ABC 13 said the home is said to sell with all terms and conditions met at the low price of $488,000.
Ironclad Lease
The property has an ironclad, long-term lease in place for the person occupying the home, which protects the tenant against rental increases in the upcoming 29 years.
How Much Is the Rent?
The tenant occupying the home has a rental agreement in place at $417 a month. The individual’s rent will never increase, and they are responsible for paying their garbage, electricity, and water bills.
Home Sold With Tenant
The property is sold as is with the tenant living there.
Why is The Home Being Sold?
The home is said to have been occupied by the owner, who has recently passed away by natural causes. The owner was over 100 years old.
New Owner Can’t Move In
According to the purchase terms of the home agreement, the new owner is not allowed to move into the home. The new owner can only take up residency once the 29 years have lapsed and the occupying tenant’s lease expires.
What the Neighbors Are Saying
Ilia Smith, a neighbor of the tenant, said that her husband called her one day and told her to look at the long line of people to see the house.
30 Years Is a Long Time
“30 years. I don’t think I’ll be around for that,” Ilia replied in an interview.
It’s Not Everyone’s Ideal Purchase
While the home boasts great potential and has over enough space to live and entertain friends, it is not everyone’s “cup of tea.”
Architectural Style
The house is in the Edwardian style and features many unique elements. According to the listing on Realtor.com, it is still in its original condition.
More Experts Weigh In
Steven MacDonald, an attorney expert in landlord-tenant law, told ABC 13 that the 30-year right of possession was a “sloppy way of estate planning.”
It Could’ve Been Done a Different Way
MacDonald further mentioned that even if the owner did it this way because they wanted to secure the person living there so that they never have to worry about where they would live, it is still not the best way. “…I think they should’ve done it a different way,” he said.
To Purchase or Not to Purchase
“It’s for a very, very unique buyer who is willing to get a big discount,” MacDonald told ABC 13. If you could purchase a huge property in a prominent U.S. state, would you purchase it under these conditions?
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Featured Image Credit: Shutterstock / Radoslaw Lecyk.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.