Buyers

Your guide to buying real estate in San Francisco

The Search

Having seen thousands of San Francisco properties over the years, we know the market and will guide your search. We see new properties daily, both in person and digitally, and we collaborate with other real estate agents regarding all market conditions. Once we agree to work together, we will make a plan and have open dialog to discuss properties currently for sale and coming soon, relevant to properties that are in contract and have recently sold.

Key considerations for your search include:

  • Price Range
  • Location and Neighborhood as it relates to Lifestyle
  • Space requirements and number of bedrooms
  • Desired amenities such as views, parking, and outdoor space
  • Proximity to parks, shopping, restaurants, schools, and commute
  • Architectural style preferences

Pre-Approval — Being Prepared

The San Francisco real estate market moves quickly. Determining a price range and allocating funds is essential. Pre-approval of financing is essential to be competitive with cash buyers. Buyers should confer with their accountant and investment advisor before beginning the search. We can make recommendations for lenders and discuss financing options, and we will urge our buyers to complete and submit all of the necessary paperwork for full underwriting.

A lender will consider three main factors:

  1. Income and debt — determining how much you can afford per month for principal, interest, taxes, and insurance
  2. Down payment and closing costs
  3. Credit history

Buyer Broker Agreement

Prior to our showing properties, California rules require that potential buyers and their brokers sign a Buyer-Broker Agreement specifying compensation, services, and the timeframe.

Prior to this ruling, sellers signed an agreement with their listing broker that specified the commission they would pay for listing services, as well as the amount of commission that would be split and offered through the MLS to the selling office — the “Buyer's Broker.” After the ruling making the buyer responsible for paying their broker, it has become the custom that sellers sign a Listing Agreement to pay a specified commission for those services, with the anticipation that buyers and their brokers will write into the purchase agreement for a specific property that the responsibility for the Buyer Broker fee will be transferred to the seller, and they will pay that fee out of escrow.

Documents

  • Buyer Broker Disclosure / Advisory — document pending
  • Sample Buyer Broker Agreement — document pending

Advice on Value

We have the experience and knowledge to help you determine value as part of an offer strategy. Our analysis includes:

  • Comparable Sales: Recent sales of similar properties in the area
  • Evaluation of Pre-Sale Disclosure
  • Price Per Square Foot Analysis: Understanding market rates per square foot
  • Current Market Conditions: Whether it's a buyer's or seller's market
  • Competition: Other properties currently on the market

This comprehensive analysis helps you make informed decisions and competitive offers.

The Offer

Once we have determined value, we are ready to put together an offer. An offer has three primary components:

  1. Price: The amount you're willing to pay
  2. Terms: Contingencies including financing, appraisal, close of escrow date, property inspections, preliminary title report, natural hazards, environmental issues, and more
  3. Buyer Credibility: Demonstrating your intent and capability to perform

Once submitted, offers can result in acceptance, rejection, counter offer, or multiple counter offer situations. You need real estate agents who are experienced, intelligent, respected, and trustworthy to navigate these negotiations.

Escrow

Once the buyer and seller have a contract, escrow is opened. In San Francisco, escrow and title insurance are handled by one company.

Escrow acts as an independent third party between all involved parties, collecting, holding, and releasing monies. Escrow only acts when it has matching instructions from both sides.

Title Insurance ensures clear title. The escrow/title company issues a Preliminary Title Report containing all publicly recorded information. Before close of escrow, the title company clears financial liens of the seller and issues a title policy.

Buyer's Due Diligence includes contingencies for financing, property inspection, and appraisal. The buyer must remove each contingency in writing. Once all contingencies are removed, the sale is pending and the buyer's deposit is non-refundable.

Close of Escrow

The buyer and seller do not need to be physically present for “The Closing.”

Several days prior to the scheduled close of escrow, the escrow officer — who coordinates the legal and financial aspects of the transaction — will be guided by buyer and seller instructions and the Preliminary Title Report to prepare the estimated closing statement: accounting for both buyers and sellers that reflects credit for funds already in escrow, bills to be paid, liens to be cleared so that the buyer will have clear title, and disposition of disbursement of funds. We will review the buyer's estimated closing statement together and instruct the escrow officer to make necessary changes.

After furnishings have been removed from the property, we will do a “final walk through” with you to verify its condition. We will advise you on the transfer of utilities.

If there is financing, the escrow officer will interface with the lender: provide required title insurance, arrange for the buyer to sign loan papers with a notary, and coordinate documents and funding. Escrow will oversee signing of the buyer's other closing papers.

When the paperwork is in order, buyer and lender fund the escrow through secure wire transfers. When the documents are signed and good funds are in escrow, the escrow officer will “release the deed to record,” and a title company representative goes to city hall to record the deed. We are notified that we are “On Record.” Congratulations!