Informational March 2, 2022

Informational: New Construction

Many new constructions in San Francisco are available, and if you want to narrow down your search correctly, you will need help from a local area specialist to:

  • Aid in neighborhood selection.
  • Provide an overview of new construction and resale developments.
  • Consult on which model and floor plan may be best for you.
  • Educate you on the legalities of contracts and disclosures.
  • Identify the right lender to finance your purchase.
  • Negotiate the best deal possible.
  • Steer you through a smooth escrow and closing process.

There are dozens of new developments in the works or planned in San Francisco. Hundreds, if not thousands, of new units will be built in the coming future. Here are some questions to ask yourself:

Choosing the Right Condo Project:

  • Which is the best investment to attain your real estate goals?
  • Which may have resale restrictions?
  • Which have non-owner occupied conditions? Pet restrictions?
  • Should you buy now or wait for future development?
  • How will the current rezoning efforts of the SF Planning Department affect your investment?
  • How will a new project affect the project you want to buy in? Will it make it less or more attractive (i.e., reduce or increase demand for your desired building and investment)?

Buying at the Best Time and Price:

  • What is the existing resale inventory?
  • What time of the year are you planning to buy? Depending on the time of year, builders may more aggressively price their units.
  • How many units are left in the development, and how many units have been sold? If the builder is motivated to sell units quickly, you may be able to benefit from this.
  • What upgrades are included or extra? Are updates and credits for closing costs negotiable?

Buying for Investment:

  • How “marketable” is the development you want to purchase?
  • Which corporate leasing companies should you work with?
  • Should you use a property management company?
  • What are the legal and financial ramifications of buying and selling an investment property?
  • What are your building’s HOA CC&Rs (covenants, conditions, and restrictions)?
  • What is the market rent for your unit?

We hope to have provided valuable insight into purchasing a new development for your home or investment.