The price of a three-bedroom, two-bathroom home built in 1924 in an upscale San Francisco neighborhood dropped sharply after a major flaw was discovered in the recently listed property.
Single-family home on North View Court in Russian Hill Sold on Zillow for $488,000 two weeks ago. This appears to be a huge steal, as other homes on this street are priced well over $1 million, and one is close to $3 million.
But any buyer would have to wait decades to actually move in, because there’s a tenant living there who’s only paying $416.67 in monthly rent and isn’t going anywhere for some time.
“The tenant’s current lease provides tenants with strict long-term rent rate restrictions, an unconventional method of rent payment, and potential occupancy rights until 2053,” the Zillow listing states. “This is an AS-IS sale and the seller reserves the right to reject, oppose, and/or accept any offer. The seller and listing agent do not guarantee access to the home and strongly advise buyers to review the seller disclosure package/addendum and consult with a San Francisco landlord/tenant attorney before making an offer.”
The listing states that the home’s previous owner was over 100 years old and died of natural causes in the home.
Despite the home’s “fine charm” and Edwardian-style design, its $488,000 list price is significantly lower than Zillow’s $526,500.Excitement” and is down sharply from the previous month’s value of $1.5 million, according to New York PostWhich represents a drop of over 60%.
Even last week, there was a long queue of potential buyers to buy this house. local tv report That could be because the listing advertises the home as “a fantastic investment opportunity for the perfect buyer.”
Douglas Lee, a real estate agent with Compass, said, Los Angeles Times This home is an opportunity to “land bank,” or defer use of the property for a long period of time.
“You sit and wait until the tenant dies, vacates or the lease expires,” he said. Times“Once that happens, you realise a lot of the potential. It’s a really good purchase for people with trust funds. If you’re buying it for your child who’s 0 or 1 year old, in 18 years you know this thing will be ready to be realised.”
The relatively affordable property stands in contrast to the overall housing market, which has become increasingly unaffordable, particularly in places like California.
The sale price of existing homes nationwide hit a new record high in May, while supply increased. In addition, Zillow says buyers now have to pay about 35% more, or about $128,000, to purchase a typical home.
Meanwhile, high home prices are having a “feudal effect” on California, according to the annual report, as policies limiting urban sprawl have driven up land values. Demographia International Housing Affordability The report was prepared by Chapman University in California and the Frontier Centre for Public Policy in Canada.
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