Several factors push home prices higher in the Bay Area.
We have far more buyers than sellers, causing prices to rise faster here than most elsewhere. The region is a tech hub and home to startups paying high salaries with stock options. This creates an influx of buyers who are willing to pay a premium just to break into the market.
Millionaires are born overnight when these startups issue their initial public offerings. These newly minted millionaires join the frenzy, further elevating prices. Because few new single-family homes are built in San Francisco, they’re becoming a rare commodity. Our market’s response to these factors is that we usually set an offer date, and only market a property for a short time, confident we’ll have buyers.
We price properties low and buyers bid up, the opposite of most markets. Sellers usually provide inspection reports, encouraging “clean offers,” and leaving little negotiation once in escrow, which is usually only 25 to 30 days, or less.
This makes for a very competitive and fast-paced marketplace.
