What don't I understand about the Bay Area real estate market?

[Anonymous]

Anonymous wrote:12:42, thanks, I appreciate the detailed response. Lots of complications to consider. Our friends in SoCal tell us that renovations are cheap there, so its eye opening to read about the difference in NorCal. Also, I assumed that folks have all earthquake proofed their homes and we wouldn't have to put in shear walls and foundation and roof anchors, etc. Weird that folks would want to live in a house w/o that. Fire and mudslides I guess should be on our danger concerns too. Preparing to pay all cash seems sensible and possible. And only looking at listings that are half our budget seems a really smart idea.

What neighborhoods to consider? When we lived there as 20 somethings, I always liked the East Bay hills from El Cerrito to Montclair and areas like Crocker Highlands and Trestle Glen in Oakland. Rockridge, Elmwood, and Claremont were favorites but I understand there's seldom anything to buy there ever. In the SF, I liked Noe Valley north to Japantown and Lower Pac Heights. I assume the Mission and Portero Hill have been thoroughly gentrified too, right?

12:42 here. The reno costs here were a shock to us too. We assumed they'd be near what we encountered in DC. Not even close! Cost is only part of the issue too. Wait times are crazy and many contractors simply don't return calls.

Definitely don't assume sellers have made earthquake upgrades. However, you may be eligible for state or local grants or tax credits to help offset these costs. Same goes for energy efficiency upgrades. Fire and mudslides are issues, as is flooding in some parts of the Bay. I checked flood maps when we were buying and am glad I did. Sea level rise is a real concern for any community on a bay or coastline.

You'll absolutely have an advantage as an all-cash buyer. I'd still probably recommend renting for a year or two though. Prices seem to be stabilizing, but it might be a good idea to let that play out for a few more quarters at least. (We bought to avoid 10% rent increases per year where we were living, but the legislature has outlawed that now.) Renting would also give you a chance to see how the different neighborhoods have changed in the time since you were here last. Mission and Potrero have gentrified some, but they still have their fair share of eccentrics. Prices tho, look just like everywhere else in The City. Noe Valley is highly sought-after, as are parts of nearby Dolores Heights. Glen Park might be a good choice for you. It gets sun, has great airport access to the south, and it has a BART station, to get you to SFO and Berkeley. (You'll quickly learn that anything you can do to avoid crossing the Bay Bridge by car is worth it.) The neighborhoods around lower Pac Heights, especially those north of Geary, are lovely too.

[Anonymous]

Anonymous wrote:DH and I met in law school in the Bay Area 25 years ago and our DD will be going to get a PhD. We've been fantasizing about relocating from Washington DC to stalk the child. Looking online, it seems that we could trade our $1.5-2M house in DC for a Berkeley Hills house with a view or a small renovated rowhouse in a sunny part of SF. We don't care about schools, don't need to commute (except to the airport) and we want to downsize. The listings we find seem much nicer than our current house. In Manhattan, we'd be looking at 1BR apartments. It seems too good to be true, especially in light of the stories about how insane Bay Area housing is. What are we missing? Are the list prices unrealistically low and every house sells $1M above asking? Do sellers expect cash buyers who can close instantly? What's the catch?

YOU are the catch

[Anonymous]

The Berkeley hills are at a fire risk and people are aware of that. It's impacting prices.