7 Things to know before buying a condo in San Francisco

With the backdrop of the Pacific’s crystal blue waters and the majestic Golden Gate Bridge, San Francisco is a beacon of innovation and prosperity. With the city’s strong economy, vibrant local shops and restaurants, and gorgeous open spaces, it’s not a surprise that many buyers usually have SF on their list of the best places to live.

Deciding to buy a home in San Francisco is something you may arrive at especially when you find that Bay Area property that ticks most of your checkboxes. Your home buying options include condos, lofts, townhomes, and tenancy in common dwellings designed to make the most out of the city’s one-of-a-kind urban lifestyle.

For the discerning buyer looking to invest in a San Francisco condo, here are seven things you should know before committing to a purchase.

 

 

#1 Condos offer great opportunities to own a home in San Francisco

San Francisco is known to have some of the highest-priced properties in the country, with the median listing price soaring to as high as $1.7 million in February 2022.

The most recent figures, however, point to a more favorable landscape for condo buyers. If you’re exploring the San Francisco real estate market to buy a condo, now is a good time to get into the action.

The median condo sale price as of February 2022 was $1.1 million, as per the latest Multiple Listing Service data via BrokerMetrics. Overall, condo prices have remained flat year-over-year, which bodes well for prospective buyers.

Condos are the typical housing stock within and around downtown SF. As you move further away from this area, you’ll see more spacious single-family homes and lavish mansions like the ones in Presidio Heights, Pacific Heights, and Haight-Ashbury, many of which can easily fetch over $4 million.

#2 Owning a condo comes with many perks

In a bustling cosmopolitan city like San Francisco, there are many reasons why a condo is the best real estate option for you.

• • Prime location  Anyone looking to buy a home knows the all-encompassing importance of location. And condos are usually situated in some of the most desirable areas in the city.Living in a condo often means gaining easy access to a host of services, as well as to the work and business opportunities in a financial or commercial district. While the exact location may vary, you’re typically never far from offices, schools, hospitals, and your favorite coffee shop or restaurant.

 

• • Variety of styles Condos in SF usually come in a variety of styles. This presents buyers with a plethora of classic or up-to-date designs to choose from — whether it’s a historic and repurposed mid-rise building, a luxury residential tower, or a vibrant mixed-use complex.You also have a wide array of options for the layout of the living space. You can choose a flat-level unit with all the rooms in the same floor, a luxurious multi-level residence, or a loft-style condo with soaring ceilings.

 

• • Amenities Condos are ideal for buyers looking for best-in-class amenities such as private lounges, gyms, swimming pools, courtyards, rooftop gardens for entertaining, in-house restaurants, doorman services, and a host of other facilities.

 

• • Professional management The vast majority of condos have an homeowners association (HOA), composed of condo owners who have a say in the day-to-day operations of the property.Condo owners vote in HOA board members who are directly responsible for creating rules and guidelines that make living in the property as pleasant as possible. They see to it that issues like noisy neighbors and untidy surroundings are sufficiently addressed. The job of enforcing community policies may fall on an in-house team or a third-party property manager.HOAs are funded by monthly fees from condo owners, which go towards the maintenance and upkeep of the property and the shared amenities.

 

• Price and value retention Even if you purchased a condo that’s well above the median range, you can be assured that you’ll be getting your money’s worth in the long run —especially if you hold the property for seven years or more.With good property management and a reliable HOA, condo owners can save time and money on maintenance, repairs, and upgrades.A well-maintained condo can hold its value for many, many years, especially in a highly urbanized area like San Francisco. Buyers who think long-term will likely be rewarded with growing equity if they decide to sell down the line.

#3 You may benefit from buying new construction

There are plenty of classic condos in San Francisco. This can be a huge draw for many prospective buyers. But when you purchase a condo in a new development, you can get a few more perks, thanks to California’s Homebuilders’ Right to Repair Act (more prominently known as SB 800).

For instance, a condo owner can ask the builder or developer to address major defects in functionality in the first 10 years of a building’s lifespan. Problems with plumbing, electrical wiring, and structural integrity are some of the issues usually covered.

Additionally, during the first year, a unit owner typically benefits from a one-year fit and finish warranty, which covers defects in certain components of the condo unit, including the flooring, paint, exterior walls, cabinets, and countertops.

#4 There are great condos in amazing neighborhoods

While condos can be found anywhere in the city, certain neighborhoods have an excellent selection of properties that offer stellar amenities and easy access to the top destinations in the area. If you are looking to buy a condo in San Francisco, here are some sample neighborhoods and what they have to offer!

Mission District

The Mission is a vibrant and bustling community close to the heart of the city. It’s also one of the oldest neighborhoods and dates as far back as 1776 when Spanish settlers completed the Mission San Francisco de Asís —the inspiration for Mission District’s name.

The neighborhood has long been in transition, with waves of immigrants from Italy, Ireland, and, more recently, from Latin America. Many of Mission District’s long-time residents are business owners who operate top-notch restaurants, lively bars, and music venues — all of which are instrumental in fostering a great sense of community.

Housing options here include flats, condos, and a few single-family homes. Condo developments, such as Linea Condominiums, Mission Modern, and Dolores Plaza Condominiums, are a mix of new construction and older properties that have been excellently preserved over the years.

Hayes Valley

Another SF neighborhood that’s located near downtown is Hayes Valley. This centrally located community is famous for its iconic Victorian-style homes and impressive food and shopping scene.

As one of the few neighborhoods that were mostly spared from the devastating San Francisco 1906 earthquake, Hayes Valley features a good number of charming historic homes that date back to the late 1800s.

Much more modern housing has been built since then, from apartments and condos to single-family homes. Condo developments like Fulton 555 and 8 Octavia Condos offer graciously appointed units with excellent amenities.

In a bid to support local entrepreneurs and homegrown brands, there is a lack of big-name chain stores in Hayes Valley. In certain portions like Hayes Street, for instance, you’ll see a slew of specialty boutiques and brands that you won’t find anywhere else.

Nob Hill

SF is known for its signature hilly landscape. Nob Hill is just one of the city’s 44 hills but stands out, particularly because of its historic mansions, a fine selection of Michelin-starred restaurants, and top-tier cultural attractions. Although many of the opulent mansions built in the 19th century were destroyed in the 1906 earthquake, some structures that remained intact have since been converted into luxury hotels.

The majority of the housing stock consists of apartments and condos. Courtyard on Nob Hill, Nob Hill Condominiums, and Crescent Nob Hill are among the most notable condos in the area. The neighborhood is filled with cool bars, great restaurants, one-of-a-kind shopping destinations, and picture-perfect views of the Bay Area.

Potrero Hill

There’s a lot that goes on in a city brimming with tech and startup energy. In Potrero Hill, you can distance yourself to a degree from all the hustle and bustle.

This tree-lined neighborhood is ideal for anyone who loves serene and sunny surroundings. Additionally, in a city where real estate comes with a premium price tag, Potrero Hill offers budget-conscious buyers great options.

Classic Victorians, apartments, and condos are the typical residential properties here. Recent condo developments, such as Onyx On The Park and Knox, as well as older properties like Potrero Court, offer a variety of options to match various budgets and lifestyle preferences.

With a handful of parks and recreation areas, Potrero Hills is a good setting for active residents. Nearby restaurants and shops, as well as a vibrant music scene, provide the neighborhood with the right ingredients for a fun weekend.

#5 Condos require HO6 homeowners insurance

An HO3 policy covers standard homes. Condos and co-ops, on the other hand, are covered by an HO6 homeowners insurance policy. If you’re getting a mortgage to fund your condo purchase, your lender will likely require you to acquire this type of home insurance.

Here’s a quick overview of the protection you get from this policy:

• • Unit or dwelling coverage – Usually covers damage from fire, smoke, plumbing issues, and even vandalism.

 

• • Personal liability payments – Covers expenses as a result of accidental damage or harm to someone’s property or person.

 

• Loss assessment – May cover additional expenses by the condo’s HOA in the event that their separate insurance policy coverage will not be enough to remedy an issue.

Do take note that there are some notable exemptions from an HO6 policy, including regional hazards like earthquakes and sinkholes. Additionally, water damage caused by underground or municipal water (e.g., sewer line breaks) are not covered. We recommend consulting with an insurance professional to explore your options more thoroughly.

#6 Parking can be expensive but you may find you won’t really need it

With San Francisco’s growing population and limited space, having your own parking space can set you back a few hundred dollars a month. Not all condos include a garage and those that do typically charge a premium for the space.

But while you can buy a San Francisco condo that comes with parking, it’s not at all far-fetched to live a car-less life in SF. Whether it’s by bus, BART, ferry, bike, or on foot, you have a host of options to get to where you need to be:

• • The San Francisco Municipal Transport Agency (affectionately called “Muni”) oversees a vast transit system supported by a fleet of buses and trains. You can familiarize yourself with the different Muni routes and stops here.

 

• • If you’re in a hurry during rush hour, the Bay Area Rapid Transit (BART) usually offers the fastest transport option. There are four underground lines than criss-cross throughout the Bay Area, stopping at a total of 48 stations.

 

• • Cable cars are iconic fixtures in San Francisco, second only in popularity to the Golden Gate Bridge. Residents in neighborhoods like Nob Hill, Russian Hill, and North Beach frequently hop on cable cars on the way to and from the office.

 

• • Scenic views throughout the city often encourage people to bike around, which is one of the best ways to get to know SF a little better each day. There’s an active and vocal cycling community that’s open to both utilitarian bikers and more competitive cyclists.Every last Friday of the month, the community stages “Critical Mass”, an event where participants ride through various neighborhoods as a group to call attention to the need to make the city’s streets safer for pedestrians and cyclists.

 

• • An array of ride-sharing services are available in San Francisco — from Uber and Lyft to relatively new alternatives like Summon, SideCar, and Hitch.

 

• Ferry rides are perfect if you want to see great views without expending a good amount of physical effort — and to get to your destination. The San Francisco Bay Ferr and the Golden Gate Ferry are the two ferry systems that operate in the Bay Area. While many residents use both as their main transport to and from work, ferry rides are also great ways to spend a leisurely weekend traveling to attractions like Sausalito, Marin, South SF, Richmond, Alameda, and Jack London (Oakland) — to name a few.

#7 A real estate agent is invaluable in a competitive market like San Francisco

When you’re buying a home in San Francisco, be it a house or condo, the competition will be fierce. Homes typically sell well over the asking price and cash offers are ubiquitous. Seasoned and hands-on real estate agents by your side can help you navigate the market to find the best deal possible.

That’s where we, JC & Heather Gonzalez, come in. We are a husband and wife team with over 18 years of real estate experience in San Francisco. We have a proven track record grounded on honesty and long-lasting relationships. Our clients not only seek us out for in-depth expertise in San Francisco real estate but also because we exert the utmost care and attention in addressing your real estate needs.

We moved to San Francisco in the 90s and fell in love with the Bay Area, especially this beautiful city by the bay! It brings us immense joy to help others do the same and thrive in this great community.

If you’re considering San Francisco as your new home, we will be more than happy to assist you in finding the perfect property. You may contact us at 510.816.6395 or 510.599.0262. Alternatively, feel free to send an email to jcandheather(at)gmail(dotted)com, or drop a message via our short contact form.