FIND OUT THE VALUE OF YOUR PROPERTY

For a confidential current value of your property submit a request and you will receive a response from Terrence within 48 hours. 

WHAT IS MY BUILDING WORTH?

When selling a building, we start with an accurate property value in order to set the ideal asking price. Some of the many factors that go into figuring out this number include the following:

Location, Location, Location

Where a property is situated is almost always the number one factor in determining the value of a property. We’re lucky here in San Francisco—it’s hard to find a bad location within the city.  In today’s changing market, we are finding an increased interest in properties with good public transit.  Good locations translate to good rents.

Income vs. Building Size

Bigger buildings tend to generate more income. And the higher the rental income produced, the higher the value of a property.  But you need to consider whether the units are protected by San Francisco rent control constraints, which could limit the potential for profits. Buildings with higher rental incomes are likely to generate higher expenses as well. If you are looking for a long-term investment, these limitations can be worked into your business plan, but if you are looking for a short-term profit generator, it’s important to look closely at the current income of a building. A good rule of thumb is to determine the cost per square foot as a way to compare buildings and the units within the buildings.  With over 15 years of experience in commercial real estate, Terrence can thoughtfully compare expenses with other similar buildings to see where a new owner might save on the expense side of the equation.

Who is Renting? Or not?

Because multi-unit buildings in San Francisco are rent-controlled, the more vacant units a building has at the time of sale, the better. Vacant units give new owners greater control over rental income by allowing them to determine the rents without being constrained by the city rules for raising existing rents in occupied units. Many recent buyers in the market have had their eye on spending more on renovation as a way to exponentially increase the rents. Conversely, if the existing renters are stable and respectful and the numbers work, that can be the best kind of real estate deal--an easy transition and a stable income.

Check the Comparables

A big factor in determining value is to compare the property with other, similar buildings in the same neighborhood that have sold recently. This can be difficult at times if other buildings are markedly different than the property you want to value. Terrence will often look at buildings in a different but similar neighborhood if there are not comparable buildings close by. 

What are the Current Market Conditions?

It is essential to keep a close watch on the market and in a city like San Francisco where the market only seems to go up, it’s even more important. You don’t want to over-value a property and have difficulty selling it, or under-value and leave money on the table. This is where Terrence’s experience comes into play to find the best value for his clients.

Property Condition and Curb Appeal

It may seem obvious but it still needs to be said: If you take good care of your property you will get more money for it. That means general repairs and upkeep and spending some time on cosmetic improvements like painting before you officially list it. This can add significant value and increase the sale price of your building.

Competition

Your building could be ready to go—you cleaned it up, fixed the roof, and did a little landscaping in the back yard. But if there are a bunch of comparable buildings also for sale in your neighborhood, you may have trouble getting the sale price you want. This has not been an issue for the San Francisco market lately, but it should always be a consideration and part of your due diligence in investigating current market conditions. If competition is affecting the value of your building, you could consider waiting for conditions to change or you could spend money on adding improvements that will help your building stand out from the others. 

Find out the value of your property

For a confidential current value of your property, click below to submit a request and you will receive a response from Terrence within 48 hours.