Three things young tech millionaires want when looking for a home: Location, location, location…
That’s what the stars of Bravo’s "Million Dollar Listing San Francisco," Justin Fischelson, Andrew Greenwell and Roh Habibi tell Yahoo Finance. The right location, the trio of high-end brokers says, has good weather, good proximity to Silicon Valley and freeway access. Areas like the Mission District and Bernal Heights have become very desirable, says Fischelson.
“These buyers tend to be young,” he says. “So they’re in their 20’s and 30’s. And in most of the country, that’s an average age to buy a house. But in San Francisco where the prices are so astronomically high, it’s young.”
The reality stars say these wealthy buyers aren’t just paying the traditional 20% down payment. “We’re seeing 30 to 40% down,” says Greenwell. “They’re not just rich on paper. It’s not all cash, but they are bringing cash.” Fischelson estimates 30% of his buyers are all-cash.
And that's why, despite the show’s name, $1 million doesn’t get you much in San Francisco. The brokers say that a "really nice one bedroom" will cost you from $1.2 to 1.5 million.
"Million Dollar Listing San Francisco," which debuted on Bravo last month, is the fourth iteration of the "Million Dollar Listing" franchise. Bravo also has shows based in New York, Los Angeles and Miami. Bravo is owned by NBCUniversal, a division of Comcast (CMCSA).
So why are viewers fascinated with the buying and selling of luxury homes-- and all the drama that goes with it? Habibi, who was born in Afghanistan and raised in the Bay Area, is new to the real estate business, just three years into his career. He loved the other editions of "Million Dollar Listing" and says he lived vicariously through the agents on the other shows. That's the appeal, he says. “Learning how to do business and negotiating transactions…Depending on where you are in the nation you don’t have access to that kind of stuff,” he says. “So by watching the show [viewers] get to see all of that.”
And sometimes the tactics are cut-throat in the highly-competitive San Francisco real estate market, creating friction among the stars on the show. “It’s a competitive business. There are only so many units to sell per year and over 4,000 agents to do that,” says Greenwell. “So at the end of the day, you have to try to get as many deals as possible.”
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