On your mark. Get set. Go! Wait. Not so fast. Buying a home in San Francisco may not be as easy as it is in various other cities across the U.S. San Francisco ranks among the top ten hardest places in the U.S. to buy a home. But on the other hand, it is also one of the top 20 best places to live in the U.S. So, before you get bogged down by the challenges associated with buying a house here, here are some factors to keep in mind if you are adamant about living in and buying a home here.
Be Prepared for a High Price Tag
One of the biggest shocks that buyers get when they’re ready to buy a home in San Francisco is how much the price tag is. Sellers can sell a house in San Francisco for upwards of
$1,680,000. And this price is just the median home price. So, before you purchase a home in San Francisco, keep in mind that the price tag for homes here can be very pricey. To add to this, the inventory of homes for sale is very low. So you could be up against a lot of stiff competition when trying to acquire property in the area. Additionally, your salary may not be the only income you can rely on to make a purchase. The down payment on homes here is quite substantial. And if you have to compete with others for the property, you’ll have to have additional stores of money to compete effectively and win. Given the median price, you’ll need to put down at least $100,000. But since many buyers offer, on average, 12 percent or more, you may need to come up with an additional $100,000 or more even to be considered.
Proceed with a Real Estate Agent
Just because it’s challenging to get a home in San Francisco doesn’t mean it is impossible. So don’t give up your hopes of living in this fantastic city yet. Instead, get in touch with a top-notch realtor who can carefully help you navigate the waters. A top buyer’s agent can help buyers purchase a home in San Francisco 1.8 times more than average agents. And they will work diligently to help you close the deal.
Become Acquainted with the Neighborhoods
One way to cut down on prices or reduce the competition is to be familiar with the neighborhoods in San Francisco. Outer boroughs may provide more affordable options, better parking, and much more modern homes. However, if you’re attracted to San Francisco for its excellent city feel, proximity to shops, nightlife, and proximity to work, living in the outer boroughs may be a deal-breaker. On a positive note, knowing exactly where you want to live will help an agent move quicker to help you get and close a deal as quickly as possible.
Consider Buying With Cash
If you find that buying a house the traditional way is taking too long and causing you to miss out on some great opportunities due to bidding wars, you may be able to cut to the chase by purchasing with cash. There are plenty of sellers who are as eager to sell their house for cash as you may be to buy. So, if you can purchase the house with money, you may be able to get to the front of the line and purchase your dream home in San Francisco.
The Bottom Line
The San Francisco market is a hard one to buy a home in the U.S. Reasonably so. However, there are so many wonderful things about this city that attracts many from far and wide. The beautiful historical architecture, great weather, booming economy, spectacular food choices, and intimate neighborhoods are all great reasons people love San Francisco. So if you want to live in this city, don’t give up. Just come up with a great plan to secure the home of your dreams!