• Greater control. True, governments and homeowner’s associations exert a lot of control over what you can do with the home you buy. But it’s nothing compared to the control landlords have on their tenants. Tenants can’t remodel their apartments, or use the common areas except as specified; the landlord can forbid them from having pets, sublessors, or more than a specified number of occupants in an apartment.
• It’s an investment. Every dollar you put into the home you buy gets you “equity” — that is, an increase in your net worth. As long as you can sell your home for more than you paid for it, you or your heirs will get that money back eventually. And while it’s a forced investment, the effective amount you have to pay for housing decreases as time goes by. You’ll still be paying $2,500/month for your two-bedroom condo in twenty years, while equivalent rents will probably be much higher by then.
• Legal and tax advantages. There’s no two ways about it: Property taxes are a big expense that renters don’t have. But balancing them out is a passel of income tax deductions only available to homeowners. In addition, a certain amount of your home’s equity is protected against judgements, so you probably won’t find yourself broke if you lose a lawsuit.
• Security and pride. People who own their home tend to take better care of it, because they know it’ll be theirs for a long time. Even with San Francisco’s strong tenant-protection laws, renters can be kicked out of their apartment at any time, even if they didn’t do anything wrong. And the local market dictates whether you’ll find a suitable place, or how much you’ll pay. When you own, only political uprising or natural disaster can force you out.
• Leverage. As you build equity, you also build your ability to borrow on the value of your home through a “home equity” loan. When you meet someone who owns several buildings, it’s often the case that they don’t “own” any of them outright, but rather have been able to use partially owned properties as security in the purchase of other properties. That’s how empires are built.

Other than your mortgage there are costs involved with owning a home that renters do not have. One of the largest is property taxes. Property taxes are re-assessed on the purchase price of a property at approximately 1.144% (this rate can change, please consult the Office of the Treasurer and Tax Collector). The tax bill is separated into two payments; one due in December and the other in April.

Other costs involved are hazard insurance (property insurance) Water, Garbage, and other utilities. Condominiums typically have Home Owner Dues which traditionally cover insurance, water, and garbage. Homeowners also should consider keeping a fund for maintenance. If the water heater or furnace breaks you will not have a landlord to call.

We supply our Buyers’ with a comprehensive one year Home Warranty to cover many of the homes systems.

Keep in mind that many of these costs can be used as deductions on your taxes, lowering your tax liability. Consult your tax advisor on how these costs can positively affect your taxes.

When you buy a home, you buy more than a building. You also buy neighbors, access to nearby shops and services, and the “feeling” that makes each neighborhood unique. Everybody has a different idea of what makes a neighborhood “good”: Your best bet is to spend a day or five driving around, sitting in cafes, and talking with people throughout the city.

The good news is that just about everybody can find a San Francisco neighborhood they like, and every neighborhood has its fans. Here are some tips to help you find the best one for you.

Important things to consider:

• Transit. Whether you travel by car, bike or public transit, an extra 15 minutes on your commute time will add up — as will the half hour you spend looking for parking if you have a car but no garage in North Beach. The San Francisco bus and light rail system “Muni” covers the city well, but you may wait as long as 40 minutes for a bus, especially in outlying areas. Parking varies throughout the city, but generally gets better as you get away from downtown.
• Population. Do you like peace and quiet, or the excitement of city life? In San Francisco, the two are often within blocks of each other. Nonetheless, it’s hard to escape the bustle in The Mission or North Beach, while the residential quality of The Outer Sunset encourages tranquility.
• Housing style. It’s hard to find a condo in some parts of the city, while in others that’s nearly all you can buy. For example, condos are popular in the areas near Van Ness Avenue (on both sides), Victorian and Edwardians reign in Hayes Valley, and more-modern single-family homes fill the Outer Sunset.
• Weather. With its hills and valleys, San Francisco is a city of “microclimates” that make temperatures vary as much as twenty degrees Fahrenheit within a few blocks. But what you’ll notice most is the difference in moisture. Neighborhoods near the ocean (The Richmond) and high on some hills (Twin Peaks) get more fog than most, while those on the eastern side (Potrero Hill, Noe Valley, The Mission) are perennially sunny.
• Price. Prices for the same building vary wildly from location to location within San Francisco, and there are no truly “cheap” areas anymore. In general, homes cost less as you move south, low, and away from downtown: District 10 neighborhoods Bayview, Hunter’s Point, The Excelsior are comparatively affordable, as is District 2’s Outer Sunset. Prices generally increase as you move north, climb the hills, and move toward downtown: Telegraph Hill, The Marina and Pacific Heights are famously pricey.
• Familiarity. Many buyers tend to look in the area they currently live in. We encourage buyers to “venture” out and experience different areas. Many are surprised at what previously discounted neighborhoods have to offer.

No amount of demographic detail can take the place of a stroll through San Francisco’s many neighborhoods, or the opinions of people who live there. The more you experience will only help you make your final decision.

Part of the search will include identifying what type of property fits your needs and budget. In San Francisco you will find several types of property for sale. Common types of residential property are:

1. Single Family Home: A home that sits on its own deeded land. This option is appealing to many due to the privacy of not sharing floors or ceilings with other dwellings. One thing to consider is that, unlike condominiums, owners are fully responsible for the maintenance of the property. Perspective buyers of Single family homes should consider a fund for the homes systems and unforeseen events.
2. Condominiums: Individually owned units within a building. Condominiums typically remain more affordable than single family homes (by area and size) Condominiums usually have monthly assessments called HOA’s ( Home Owner Association Dues) These typically cover common expenses of the building such as maintenance, reserves, garbage collection, water, and insurance. The HOA dues vary greatly by building and amenities. Condominiums typically have Covenants, Conditions, and Restrictions commonly referred to as CC&R’s. The CC&R’s will outline rules of the building.
3. Tenancy in Common/ TIC’s: This is actually a form of ownership. You will typically see these in multi unit buildings that are not condos. Buyers are buying interest in a building. The goal of many of these buildings is to eventually turn the units into condominiums. Perspective buyers should be fully aware of current condo conversion laws and seek the advice of a qualified real estate attorney. We can refer you to an attorney if needed.
4. Cooperatives: Also called a stock cooperative or co-op. A structure of two or more units in which the right to occupy a unit is obtained by the purchase of stock in the corporation which owns the building. Accordingly, there is no individual ownership of a specific unit. Ownership is represented by a stock certificate with a proprietary lease which gives the holder of the stock the right to occupy a particular apartment. Currently there are only a few lenders that lend on Cooperatives. We can refer you to a qualified lender.
5. Multi Units: This would include property with 2 or more units. This would appeal to investors, buyers doing a 1031 tax exchange, or owner occupiers wanting to live in one unit and collect rents on the remaining units. Many variable go into purchasing multi units including; tenant status, expenses, and rents.

Now that you have your financing questions answered and you have your Realtor the search begins. Decide what you want in your new home. What neighborhoods are you interested in? What amenities do you want in your new home? Is close proximity to public transportation important? Do you need parking? How much room do you need? If you’re searching for a condominium do they have pet restrictions? Do you need outdoor space? Do you need “move in ready” or do you like the idea of a fixer?

These are all questions you will need to ask yourself when your search begins. Many times your criteria will change once the “house hunting” begins.

We will customize the process to meet your needs and personality. Some home buyers prefer to preview properties themselves, some like us to accompany them. We will send you daily updates from the MLS (multiple listing service) with details of properties you may be interested in.

Currently the market is very competitive and desirable properties move quickly. Prospective buyers are encouraged to commit themselves to the search and set time aside each week to view properties and speak with your realtor.

Once all the inspections have been completed we will contact you to make an appointment to sign your escrow instructions and final loan papers. The escrow officer will tell you the amount of money you’ll need (in addition to your loan funds) to complete the purchase. This amount will include “closing costs” such as appraisal fees, loan fees, escrow charges, advance payments on property taxes, homeowner’s insurance, title insurance premium, inspection charges and the like.

Before coming to sign escrow papers, make sure you have done the following:

1. Identify all your lender’s requirements and make sure you have satisfied them.
2. Obtain hazard/fire insurance. Call your escrow officer with the insurance agent’s name and telephone number. You must have your policy in place before the lender will send your loan funds to title. Condominiums should have insurance in place but Buyers are encouraged to obtain insurance for their personal property.
3. Obtain and bring with you a cashier’s check or certified check issued by a California institution made payable to the title company in the amount indicated to you by the escrow officer when you made the appointment to sign your escrow instructions.
4. Bring either your valid driver’s license or passport to your appointment.
5. Before your appointment, you must decide how you wish to hold title to your new home. We suggest you consult a lawyer, tax consultant, or other qualified professional.

After the Sign-Off
After you have signed your escrow instructions, the escrow officer will give them to the lender for a final review. The review usually occurswithin a few days, after which, the lender advises the escrow officer that the lender is ready to fund the loan. If all the conditions of the escrow have been satisfied, the escrow officer will inform you of the date the escrow will close and will take care of the technical and financial details.

The Close of Escrow
This is when you will receive the keys to your new home! Close of escrow signifies legal transfer of title and occurs when the grant deed is recorded with the County Recorder. As well, the lenders deed of trust on your home records concurrently with the grant deed. Recording usually occurs within one working day after loan funds are received in escrow. Several weeks after closing, the County Recorder’s Office will mail you the original grant deed.