San Francisco’s Top 3 Overbids in 2021

San Francisco’s Top 3 Overbids in 2021 Share One Commonality

Three homes in San Francisco sold for 73%-81% over asking, and their shared commonality might surprise you. No, it’s not because of an ADU or expansive outdoor space; these homes share one thing: the 94116 zip code. That’s San Francisco’s Sunset District. Why is the market so hot in the Sunset? Well, the pandemic might have something to do with it.

It’s no secret that the pandemic has changed the wishlists of buyers. Gone are the days of sacrificing space for a prime location. Buyers are looking for properties with an office or bonus room now that working from home is the norm. The Sunset District delivers properties that fit the bill and at a price point below many other neighborhoods. With a suburban-like feel, the Sunset offers the option to live in a single-family home with a still affordable by San Francisco standards price, without leaving the city. Demand for homes in the Sunset has steadily inclined over the last decade, but bidding-wars have now reached an all-time high. Proximity to the ocean, bustling commercial districts, and parks at both ends contribute to its growing popularity. 

Redfin ranks the Sunset as a “very competitive” neighborhood for buyers, reporting that the average home sells for 21% over the asking price in about 14 days. Homes dubbed as “hot homes” sell for 37% above the list price in about 11 days.

The current homes for sale in the Sunset

Here are the homes sold for the highest percentage over asking this year in San Francisco

1. 3228 Santiago Street 

Listed for $799,000, this 1,000 square foot, three-bedroom, one-bath home is newly remodeled. The sellers refinished the floors, updated the lighting, and painted the walls throughout. Staging allowed buyers to see the possibilities of the bonus space in the basement and entertaining opportunities in the backyard. The home sold in less than three weeks for $1,452,500 (81.8% above the asking price).

2. 2543 16th Ave 

For sale for $1,095,000, this 1,650 square foot house has three bedrooms and two bathrooms. The competitive price likely fueled a bidding war for this property. According to Trulia, similar homes of this size in the 94116 area code have a value of $1,658,690. This home on 16th Ave sold at 13% higher than the average value and 74% above the asking price at $1,910,000.

3. 2370 28th Ave 

Last on the list is this Spanish-style home built in 1925 with many original period details intact. With 1,175 square feet, this two-bedroom, one-bathroom home has space for a home office and a landscaped backyard. The house was fully staged and, modern lighting was installed, creating a cozy and luxurious atmosphere. Originally listed for $995,000, the home closed for $1,727,011, about 73.5% over asking price.

The bidding wars generated by these listings were likely motivated by three factors. The homes are in a neighborhood popular with buyers. The homes offered bonus spaces that buyers are seeking. And lastly, the agents priced the homes to generate interest and offers. When buyers envision themselves in a home and offer to buy a property, they’re more likely to continue increasing their price in fear of losing the property to another.

 The 2022 housing market remains advantageous for sellers. If you’re looking to sell your home for top dollar this year, I can help. Give me a call at 415-467-4000.

Ron Davis is a top-performing broker with over 30 years of experience in the San Francisco and Peninsula Real Estate markets.