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Dear TIC Owners, You Just Got Royally Screwed

Update June 13, 2013: I just received a copy of the legislation as amended at the June 11 meeting. I’ll be reading it and making some more posts to flesh out my thoughts in the coming day or two. Thanks for your patience, everyone!

The San Francisco Board of Supervisors voted to approve condo lottery bypass legislation, and you’d think that would be a wonderful thing for TIC owners. But the devil is in the details, and the details – while still murky – appear to screw anyone with aspirations of home ownership in San Francisco that doesn’t have a big pile of Google, Facebook, or Apple stock to help them with their first purchase.

Why Rent? Here's Why...

Why Rent? Here’s Why…

If you are a TIC owner that qualifies for the lottery today, you’re kinda-sorta right to be happy. In exchange for a $20,000 extortion fee per unit, the city will gently shield its eyes with your big fat check and look away while you submit all your paperwork to the city so your building can become a condominium. The congratulations comes with a big fat asterisk, though: tenant’s rights activists just did a pretty good job of screwing almost every TIC owner going forward.

I have nothing against tenants – I’ve been one myself, and I assure you I could share some crazy *** landlord stories with you. But what happened tonight is pretty much a nightmare for owners of TIC units. Why?

  • The Board of Supervisors did not create any “new” lottery spaces for TIC conversion. Instead, they just destroyed the already awful lottery system and replaced it with requirements that appear to double occupancy requirements and make it almost impossible to convert five and six unit buildings to condominiums in the future. If you just bought a TIC in a 3 unit building, I hope you didn’t want to convert it to condo. Because three snowballs in hell have a better chance of becoming a snow-person than you now have of converting your TIC to a condo. 
  • The Board of Supervisors also destroyed an owner’s guaranteed right of conversion because under the new law anyone – yes anyone –  can now challenge a condo conversion for any reason at all. As I understand it, there are absolutely no guidelines or criteria that DPW must use when deciding to disallow a condo conversion. Does your building meet all of the requirements? Doesn’t matter anymore – regardless of whether or not the building satisfies all of the “requirements” –  one bitter person with some spare time on their hands can end your conversion dreams.

*sigh*

This, my dear readers, is why we have steered our buyers as far away from almost all tenancies-in-common for as long as we’ve been in real estate. The odds have always been stacked against TIC owners, and legislation like this is what passes as “progress” in San Francisco.

Now That’s a Throne

I see a lot of interesting things when I’m out touring homes. Out of respect for the privacy of the sellers and future buyers, I don’t post a lot of it.

Every now and again, though, something is just too irresistible. For example, the numerous steps required to get yourself seated on the toilet in this bathroom surely make it  more of a throne than just a humble water-closet.

And believe it or not, this is one of the more tame toilets I’ve seen over the years.

The Castle at 881 Innes in the Bayview – when last on the market – had a toilet that, quite literally, looked like a wooden throne. Since you probably won’t believe me, here’s a photograph:

A True Throne?

A True Throne?

My favorite toilet, however, is one that I can’t seem to find the picture for. But if was a fishbowl toilet in a million dollar + home in Noe Valley!

[as a quick side note, I'd just like to point out how hard it is to write a blog post about toilets without resorting to potty humor]…

Most (good) agents believe that our job is to make sure a home shows as spectacularly awesome as is possible. And part of that is to highlight a home’s features and de-emphasize the less-than-ideal parts of a home. Which does not mean conceal or hide them, thank you very much!

The reason we do this is because when a potential buyer leaves your home after a viewing, we don’t want their only memory to be of your unique toilet (or your boring toilet in a unique location, which is another post in of itself), or flamboyantly wallpapered or painted walls (the Barbie Bathroom comes to mind, for example).

Have a great Monday, if you know of any awesomely fascinating toilets, we’d love to hear about them (no, seriously) in the comments below. But keep it clean!

 

An Uber for Home Services?

Those of you that know me know that I come from a background in the technology field (I used to work as an Apple picker for the big fruit company down in Cupertino). I still keep up with a few of the tech blogs, so I was interested in this article I found on techcrunch this morning about a company called ClubLocal.

ClubLocal offers to be the Uber of all your home needs

ClubLocal offers to be the Uber of all your home needs

ClubLocal is desribed by techcrunch as being like an Uber for home services. The setup works like this:

  • ClubLocal goes out and finds service providers, interviews them, adds them to their program
  • Service providers get an iPad and back-end systems for responding to client requests and managing them
  • ClubLocal negotiates rates with their service providers
  • You pay ClubLocal, they in turn pay the service providers at pre-negotiated rates
  • You leave a review on ClubLocal…

The service launched in Dallas last summer, so it will be interesting to see how they do here in the SF area. Having taken a look at the site, the one thing I’m not sure I like is that when you are booking a service, you can’t see who the actual service provider will be.

For most folks, that’s probably the point. They just want an appliance repair person, or an electrician, or an…. But being involved in the world of homes, and knowing so many local companies, I was actually kind of bummed that I couldn’t see who the actually company delivering the service was.

From looking at reviews, it looks like you can leave a review for your particular provider, but the provider is not actually named. Instead, you see reviews by service category, but beyond the category they don’t provided any more information about who provided the service.

It seems pretty similar to services like Angie’s list and some of the other local service websites. The big difference seems to be in how rates are negotiated and providers are payed. Angie’s List and others leave that to you, ClubLocal has wrapped it all into the service they provide.

What are your thoughts? Would you try ClubLocal?

Golden Gate Park: The Ball Thrower Statue

Golden Gate Park has a lot of statues. Because we know not everyone gets to live in San Francisco, we’ve decided to share them with you here on our blog, in no particular order (although, geographically speaking we are starting in the north-east corner of the park). Or maybe you live here, and you needed a great reason to get out and wander around our awesome urban park. Our awesome urban park that is larger than NYC’s Central Park!

(click any image below for a larger image and a slideshow/gallery)

The statue above of a baseball player throwing a ball is located on the south side of JFK drive, near the main vehicle entrance on the east side of the park. It is between JFK and the tennis courts, pretty much across from the Conservatory of Flowers

BALL THROWER
Bronze. A life sized figure of a mustachioed baseball player of the 1880′s throwing a ball.

Artist: Douglas Tilden.

Acquisition: Created in 1889. It was acquired in 1892 as a gift of James D. Phelan. The inscription states “Presented by a close friend of the sculptor as a tribute to his energy, industry and ability.

Location: South side of JFK near Kezar opposite the Conservatory of Flowers

- Source: San Francisco Art Commission, A Survey of Art Work in the City and County of San Francisco, published by the Office of Mayor Joseph L. Alioto in 1975 as a San Francisco Bicentennial project.


View Golden Gate Park Sculptures in a larger map

What are your thoughts on the baseball player statue in Golden Gate Park? Love it, hate it, or are you so bored by it that you didn’t even notice it existed until today? We’ve been busy out snapping pictures in the park, we’d love it if you took a moment and got busy with a comment below. As always, keep it positive!

 

Is it a Bubble?

Is it a bubble? I can’t tell you exactly how many times I’ve answered that question in the past two weeks, other than to tell you I’ve answered that question a lot.

The short answer: No.

Jellyfish from the California Academy of Sciences

Is the SF real estate market a bubble? – The longer Answer

Yes, we’ve had an incredible return of buyer demand coupled with low inventory on the seller side. Which has resulted in some jet-fueled appreciation over the past several months. A single family home in Mission Dolores that listed for $1.250 million and sold for $1.800 million comes to mind. As do a bunch of other properties that similarly went for a phenomenal amount of money over the asking price. So, what’s going on?

First: The Pivot
The San Francisco real estate market changes quickly. While I’ve never worked in another geographic market, my peers across the country tend to agree that SF is a rather mercurial market. Much like Project Runway or fashion, one day you’re in, the next day you’re out. We had a very sharp pivot at the beginning of this year.

Second: Appreciation
Thanks to that sharp pivot and all of the cash in San Francisco (1/3 of condo sales this year have been all cash, for example) prices have been on a very rapid, very sharp upward surge.

Third: Plateau
I honestly think that we are about to hit stage 3, the plateau. Even if no one needs an appraisal, there comes a point at which even San Francisco buyers decide the market is too expensive. So buyers start to back-off. Usually, often roughly at the same time, other property owners in SF neighborhoods start to realize what their home is worth. So it’s pretty typical to see an increase in inventory at around the same time buyers start to reign their bidding in. Which usually results in a market where prices plateau at their new “equilibrium” for a period of time.

Fourth: ?
What comes next after the plateau is most likely more appreciation. Given the number of buyers in the market, consumer sentiment about the economy, historically low interest rates, and a historic lack of supply in San Francisco the reasonable expectation is for prices to continue climbing. How far they climb, and at what speed, is the open question.

What are your thoughts on the SF market? Unsustainable? Headed for a correction? Just getting started? We’d love to hear your (civil) thoughts in the comments below!

Tule Elk Park, Cow Hollow

This past Tuesday tour I had a few minutes to spare during the 10am block, which covers the Pacific Heights, Cow Hollow, Presidio Heights, and Marina district neighborhoods (district 7 on a SFAR map).

I stumbled across the sign you see below for Tule Elk Park, and delighted by the toy soldier gracefully guarding the top of the sign, I had to snap a quick picture. And blog about it. Because that’s just how we roll here at Team JacksonFuller.

Tule Elk Park in the Cow Hollow neighborhood

Tule Elk Park is an early education school/child development center that is operated by the SFUSD. And while all that is interesting, what I really liked was that Tule Elk Park has played an important role in the greening of San Francisco school. Tule Elk Park (TEP) is an original member of the Green Schoolyard Alliance here in San Francisco. In fact, so much has been learned about greening schools at TEP that a few books can trace their origins back to the site: How to Grow a School Garden by Arden Bucklin-Sporer and Rachel K. Pringle, and Asphalt to Ecosystems: Design Ideas for Schoolyard Transformation by Sharon Danks.

In September of 2011, Tule Elk Park was also on the green schools tour for Engaging our Grounds: The 2011 International Green Schoolyard Conference.

Have you visited? What are your thoughts about greening schools in San Francisco to provide kids with more access to nature and outdoor play? We’d love to hear your thoughts, and while you’re at it, could someone please explain if it is just a coincidence that we pronounce both the “e” in Tule and the “e” in Noe? Inquiring minds want to know. Or at least want to start conspiracy theories…

A Carbon Powered Car Unlike Any Other

Have you ever been to Flora Grubb? If you have, then the picture below is probably old news. But if you haven’t, and you live in the city, then you owe it to yourself to find some time to make your way out to this amazing garden center and nursery. Not only do they have amazing plant sculptures – like the car below – but they also have incredibly good plants, and really helpful, friendly, and knowledgeable people that know far more about plants than I probably ever will.

2013-05-25 11.02.38

A Flora Grubb Plant Powered Car

Even if trips to the Bayview aren’t your normal weekend (or evening) thing, if you have access to some yard and you are in need of plants, then I would strongly encourage you to find the time to visit Flora Grubb. Here are my top three reasons why you should visit the amazingly smart folks at Flora Grubb:

  1. They sell Ritual coffee on-site. Even if you hate plants, I’m sure you’ll agree with me that the folks at Ritual make some awesome coffee. 
  2. I have yet to kill a plant that I have purchased at Flora Grubb. And while you might think I’m a Realtor, my main job is torturing plants before killing them. And so far, my black  thumb has been no match for the great greenery of the Flora Grubb. If I can’t kill it, then you probably can’t either.
  3. It’s quirky. And sunny. Ok, make it four reasons. I can wander around the gardens at Flora Grubb for a very, very long time. They are filled with creatively arranged plants, plants I’ve never seen before, plants I didn’t know existed, and broken down cars that are filled with… plants.

What’s your favorite nursery in San Francisco? Even if it isn’t Flora Grubb, I’d love to hear about it in the comments below

Landlord/Tenant Rorschach Test

Is it a map of Ellis Act Evictions in San Francisco, or a Rorschach eviction-blot test to see where you are on the San Francisco political spectrum?  The map below shows the location of Ellis Act evictions in San Francisco over the past approximately 15 years. While I have some issues with the map (ie, the map points of interest are rather larger), I find the reaction people have to the map to be even more interesting.

Map of Ellis Act Evictions in San Francisco

Map of Ellis Act Evictions in San Francisco

Some individuals and institutions (I’m looking at you, SFBG) feel that it is proof of how wealthy “speculators” have occupied San Francisco, forcing out every person of modest means in their never-ending-quest to enrich their pockets at the expense of others.

Others look at it and see evidence of a city failing to meet the housing demands of its residents – both current and future.

Others look at the map and wonder what the big deal is all about, anyway?

What do you see?

As for me, I get really frustrated every time I see an article that posits home-owners and home-renters are mutually exclusive groups with no common ground. I get even more frustrated when the situation is seen in terms of a “zero-sum” game, in which every “win” comes at the expense of the other side.

What I see when I look at the map is an incredible failure of the leaders and planners of San Francisco to meet the housing demands over decades and decades. San Francisco isn’t the largest city in the world, and it will never have the space to sprawl like a Las Vegas. But that doesn’t have to mean a victory for home-owners must come at the expense of renters, or vice versa.

It’s easy to play the politics of divide and conquer, lining up the usual suspects for “property rights” against the usual suspects f0r “tenant rights.” Why do otherwise smart and savvy San Franciscans continue to fall for this? Why aren’t we capable of electing leaders and choosing planners that realize for our city to continue to flourish we will need to find ways to accommodate citizens of every socio-economic background and income range?

We can do better, and I think it starts with putting our typical polarizing arguments to the side and working from areas of common agreement. What do you think?

Tuesday Broker’s Tour Video

A big part of our job as San Francisco Realtors is keeping up with the market. Every Tuesday, agents in San Francisco have the opportunity to showcase their listings for other agents, and preview other agent’s listings. The tour starts at 9am in the north-east corner of the city, and works its way through the city in a roughly counter-clockwise motion, ending at 4:00pm in District 9 (Bernal Heights to  South Beach) and District 10 (Excelsior, etc.).

We faithfully use both Tuesdays and Wednesdays (our office meeting and tour day) to preview new listings, showcase our own listings, and more generally keep up with the market.

We made a video showing a recent Tuesday tour for us (link to the youtube page of the video embedded above), starting with Matt previewing homes in the 9am block and ending 37 properties later in the Mission at about 3:30pm. There really is no such thing – for us, at least – as a typical Tuesday Tour. Depending on how many listings we currently have, how many buyer clients we are working with, and what is on tour when, we sometimes divide and conquer, tour time-blocks separately, or otherwise put the power of two to work for our clients.

Here is the Tuesday Tour schedule (as of the writing of this post):

9:00 am – 10:30am: District 8

10:00am – 11:30am: District 7

11:00am – 12:30pm: District 1, District 6

12:00pm – 1:30pm: District 5

1:00 – 2:30pm: District 2, District 3, District 4

2:00 – 3:30pm: District 9, District 10

We hope you enjoy the video we made of our May 21, 2013 Tuesday broker’s tour in San Francisco. We hope that you find it to be an enjoyable little movie, and that it also gives you a better idea of how we stay on top of the market for our clients. We’d love to hear your questions about Tuesday Tour or, well, pretty much anything. Feel free to leave a comment below, or give us a call or email anytime.

How Would you Feel About This Neighbor?

Last fall we previewed an adorably small single family home for sale at 141 Ames in the Noe Valley neighborhood of San Francisco. As you can see from the picture below, the fence has a lot to say!

A Very Talkative Fence in Noe Valley

Would you live on a block or next to a neighbor that has such a busy fence? On the one hand, I really like it and respect their creativity (particularly since artistic creativity is not my speciality, although I’m working on it).  On the other hand, it just seems really busy and if they have this much to say on their fence, how much do they have to say in person?

The fence in question is on a lightly trafficked alley, I honestly don’t know what the SF rules and regulations are about exterior decorations, particularly when it comes to fences. Given that the city wanted to fine a Russian Hill homeowner for installing a tasteful-by-comparison cartouche $250/day, I’m pretty sure that if someone wanted to make a stink about this fence that they certainly could. Not that we’re encouraging that. We like San Francisco quirky, and if the current Noe Valley neighbors don’t have an issue with it, then we certainly aren’t trying to stir things up.

But how about it? Would seeing this fence when you were out on a home tour make you more likely or less likely to be interested in the home for sale? Or, would you be indifferent to the fence and be much more concerned with the home you are looking at? I have to say that if I’m being really honest, it would give me a bit of pause. I wouldn’t let it be a deal-breaker, but I’d definitely want to meet the neighbor to make sure that they are crazy-cool, not crazy-crazy!