426 8th Avenue Sold
426 8th Avenue, our fixer property in the Inner Richmond between Geary and Anza Street, closed escrow yesterday for $1,200,000. It was a bit of a strange property with an awkward layout upstairs but with a large lot and designated RM-1. Before bringing it on the market we cleared out all the sellers belongings, removed old carpet, refinished the hardwood floors, and painted the interior of the upstairs living space. There were eight sellers with three trusts, and several inter-spousal quitclaim deeds required by the title company in order transfer title, which all needed to cleaned up before opening escrow with an accepted offer.
We listed 426 8th Avenue for $849,000, which was quite low, but was intended to entice buyers to take a good hard look at the property in order to understand what the opportunity was. We figured it would attract two types of buyers: owner occupiers interested in the neighborhood and willing to live in the current space as is, and buyers interested in developing the property into a very large single family home or perhaps several units which is where the RM-1 designation was helpful. Even at $1,000,000 it is difficult to find a home in the Inner Richmond, so we guessed there would be buyers willing to put up with this property’s shortcomings if the price was right. We wanted developers to see that with units selling for between $500,000 and $1,900,000 in the Inner Richmond there was a lot of margin with 426 8th Avenue if they decided to redevelop the property into a multi-unit building.
In the end we received 13 offers, several of which were all cash, and the property closed escrow for $1,200,000.