Moving

San Francisco dwelling crashes greater than 60% in worth after itemizing says patrons should wait a long time to maneuver in

A three-bedroom, two-bathroom home built in 1924 in an upscale San Francisco neighborhood saw its value drop after the property recently for sale hit a major snag.

The single-family home on North View Court in Russian Hill was listed for sale on Zillow two weeks ago for $488,000. That looks like a bargain considering other homes on the cul-de-sac are worth well over $1 million, with one nearly $3 million.

But any buyer would have to wait decades to move in because there is a tenant living there who is only paying $416.67 a month in rent and isn't going anywhere for a while.

“The tenant's current lease appears to grant tenants strict restrictions on the amount of long-term rent, unconventional methods of rent payment, and potential occupancy rights through 2053,” the Zillow listing states. “This is an “as is” sale and the seller hereby reserves the right to decline, counter, and/or accept any offer. Seller and broker do not guarantee access to the home and STRONGLY recommend buyers review the seller's disclosure package/addendums and consult with a San Francisco landlord-tenant attorney BEFORE making an offer.”

The previous owner of the house was over 100 years old and died of natural causes in the house, the ad continues.

Despite the home's “handsome exterior” and Edwardian architecture, its list price of $488,000 is well below Zillow's Zestimate of $526,500, according to the New York Post, and well below its $1.5 million valuation just last month, a drop of more than 60 percent.

Last week, the house was still attracting a long line of potential buyers, local television reports said. That may be because the listing touts the house as an “excellent investment opportunity for just the right buyer.”

Douglas Lee, a real estate agent at Compass, told the Los Angeles Times that the house was an opportunity to “save land” or postpone use of the property for a long time.

“You sit there and wait until the tenant either dies, moves out or the lease ends,” he told the Times. “Once that happens, you can realize a lot of your potential. This is a really good purchase for people with trust funds. If you buy it for your child who is zero or one year old, you know that in 18 years they will be ready for you to realize it.”

The comparatively low real estate prices contrast with the general housing market, which has become increasingly unaffordable, especially in areas like California.

Nationwide, existing home sales prices rose to a new record high in May, even as supply increased. In addition, buyers now need to put down about 35 percent, or nearly $128,000, to afford a typical home, according to Zillow.

The story goes on

Meanwhile, high housing prices are having a “feudalizing effect” on California as policies to limit urban sprawl have pushed up property prices, according to the annual Demographia International Housing Affordability Report, produced by Chapman University in California and the Frontier Centre for Public Policy in Canada.

This story originally appeared on Fortune.com

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