“Million Dollar Listing” brokers Andrew Greenwell and Roh Habibi discuss the scramble to the top of San Francisco’s luxury real estate market. Buyers apparently often exceed asking prices by “hundreds of thousands of dollars” and waive inspections and pest reports in order to elbow past the competition. These buyers, driven by overheated markets like San Francisco’s, elect to waive property condition contingencies and take a risk on buying properties as disclosed.
Waiving contingencies is an incredibly risky and ill-advised move. Inspections provide critical information for the selling agent’s mandatory Transfer Disclosure Statement (TDS) and protect agents from misrepresentation or deceit liability. [See first tuesday Form 304]
The brokers also discuss the relevance of the urban tech industry to the luxury real estate market: even clients who aren’t in tech are supported by (or supporting) the tech industry.