The San Francisco Bay Area is incredible. From the city itself, to the quant towns that have their own special vibe, its no wonder why Bay Area real estate is so popular! As a licensed Realtor and native of the San Francisco Bay Area, I thought it would be helpful to share 10 quick tips about Bay Area real estate to help you whether you are buying, selling, or investing in real estate.
Tip #1 How to afford buying a home in the Bay Area
This is quite possibly the biggest question I get asked as a realtor when people are moving to the Bay Area from other parts of the U.S. and overseas. The Bay Area is home to some of the highest paid jobs in the world, world class universities, and best healthcare that money can buy!
If you are coming from an area outside of the Bay Area, you may have to downsize to afford a property in your budget, unless, you have $1M+ for a 3,000 square foot home which is the entry point for a large house that you might find elsewhere in the country for half that price.
Having realistic expectations of what you can afford and the style of home – condo, townhouse, single family, etc. are important to decide as you begin your search.
Choosing an area that has lifestyle features to enjoy outside of your home and working hours is also important, so you can enjoy what makes the Bay Area one of the best places in the world to live.
And, for those on a budget, one option is to cut your expenses by living with friends or family for a bit, or even out of the Bay Area, and saving as much money as you can so you have more to put down towards your Bay Area dream home in order to qualify and have an affordable payment.
Then again, if money isn’t an issue, there are plenty of luxury properties one can search for throughout the Bay Area – from ocean front estates to secluded mountain retreats, the choice is yours.
Tip #2 Choosing the right realtor
Odds are you’ll shell out at least half-a-million dollars to over $1M dollars to buy a piece of Bay Area real estate – one of the largest investments people make in their lifetime.
It’s critical that you find a licensed realtor who knows the Bay Area so you find the community that is best for you.
Working with a licensed realtor also means that your realtor will have access to more information about the properties through the MLS site compared to what you can see on Realtor.com or Zillow.
My clients typically find that working with me is the right choice because I know the market, and can provide them with the guidance sought to feel confident with their real estate purchase.
When choosing to work with a realtor, take the time to interview each other to ensure communication, expectations, and fit are present so you have as smooth of a ride as possible through your home buying or home selling experience.
Tip #3 Explore the area
I encourage all of my clients to drive the area that is on their priority list. You should take the time to due your own due diligence on the area you will be living.
Start by driving from your desired home to your work to understand commute patterns, and try taking public transit if that’s an option.
Sit outside your dream home in your car with the windows rolled down to hear street noise, nearby parks, airplanes overhead, etc. to know if there will be noises that bother you.
Walk the neighborhood and say hello to people. After all, these will be your neighbors if you make an offer – so hopefully you feel like you fit in and enjoy your new community.
Tip #4 Make your no-go list
Knowing what you like is important. Also, knowing what are no-gos are equally important. When you have your no-go list, give this to your realtor so they know where to focus their search efforts for you and what is off limits. Time is everything in a competitive market, so don’t waste it.
Tip #5 Use Google earth
I love Google earth because you get an aerial view of a property that you are considering. You can view things like roadways, density of housing units in the neighborhood, obvious natural hazards like rivers or waterways, and the types of businesses that are in the neighborhood, including where to eat!
Tip #6 Schools can cost you money or save you money if you have kids
The Bay Area has incredible public schools in many neighborhoods compared to the costs of sending your child to a private school that can cost an additional $25K+ per year, per kid! You can research school districts and the educational programs they offer as each district differs in value added programs and strengths.
Tip #7 Public Transit Pros and Cons
Let’s face it, public transit in the Bay Area is not great. America was designed to be a car-forward nation compared to other parts of the world where public transit came first. While we do have numerous options from BART to my favorite, the water ferry, they are costly and often times not efficient depending on your work hours and if you have to transfer from one transit system to the next. If you live in the suburbs, it’s important to know your commute options. If you are a city dweller, disregard, you’ll be just fine and you can even look into car shares if you want to escape the city for a day in the burbs.
Tip #8 ADUs and in-law units to help you pay your mortgage
California has a housing shortage, and with that, comes the recognition that building more ADUs is the right thing to do. Since every city varies on their building codes and what they will allow, it’s important to do your due diligence if building an ADU or in-law unit is something you are interested in doing. Checking with the building and planning department is a great first step. You can research things on their website for the city you are interested in buying real estate, and call them for questions. Buyers should always conduct their own due diligence when it comes to things that require permits. If you are successful in adding an ADU or in-law unit, this is a great way to add value to your Bay Area real estate and offset your mortgage with a paying tenant.
Tip #9 AirBnB
Here’s the deal…if you buy a home as your primary residence, you must intend to occupy that property under the law. That said, it is usually ok to rent out a room or rooms in your house. If you are house hacking, meaning you occupy one room and rent out the others on AirBnB, Craigslist, or Furnished Finder, you will need to check with your HOA and city regulations. Some cities require that you have a permit on file to rent an AirBnB. Staying in compliance with HOA rules and regulations, as well as that from the government are a must. Conducting your due diligence ahead of time is important so you know what you can and cannot do. Not every property is allowed to be rented short term. And any property you knowingly buy for investment has different rules for financing than what owner-occupied and first time home buyer loans offer.
Tip #10 Research Bay Area real estate appreciation
Researching how much the top properties you’ve identified have appreciated will help you better understand why purchasing a home in the Bay Area continues to be a wise investment. You can view the history of each property from years past to the last sale, and from there, can calculate the appreciation of that property to make a financial model for yourself. Obviously things can change given economic factors; however, many places in the Bay Area continue to see year-over-year appreciation.
