Interested in buying a condo at 750 Van Ness? A REO (foreclosed) home is currently on the market in the building. Its being advertised by the listing agent as a regular condo, but after an inquiry from a client I did some research and determined that it is actually a BMR condo (below market rate).
This is, to be blunt, a really big deal and a really big difference.
In an effort to provide affordable housing, any new development must set aside a portion of their homes for what are known as BMR or below market rate homes. The homes have deed restrictions on them, and their initial sales price is set by the Mayor’s Office of Housing. Any future resales are governed by the deed restriction, which mandates a sales price based on bay area incomes. In addition, the homes can only be purchased by first time home buyers and must be owner occupied. There are some other restrictions as well, but these are the big ones: sales price based upon bay area income index, first time home buyers only, must be owner occupied.
The tax records list this home as a “Condominium BMR” and the last sales price was a goofy number (usually sales prices are round numbers like $399,000 but this one was something very exact like $254,376). Based on the past purchase price I put a call into the listing agent, who has yet to return my phone call (3 days and counting).
I then contacted the Mayor’s Office of Housing, and was able to verify that the condo is indeed a part of the BMR program. The Mayor’s Office said they were in touch with the listing agent to have the listing corrected, but as of this morning the property is still not advertised as a BMR condo. While a buyer would hopefully discover the deed restrictions during their due diligence, I say why waste your time making an offer…
I have not included information about the property address or listing agent as I do not want to run afoul of MLS or Code of Ethic violations for advertising another agent’s listing and/or appearing to make unsolicited remarks about another agent. So let’s be clear: I’m not trying to advertise their listing, and if you want to bring me up on code of ethics violations for protecting consumers, go for it!
If you’d like the address, please drop me an email or phone call and I’ll share the details with you.