A home in San Francisco's trendy Russian Hill neighborhood is for sale for less than half its value, but the offer is spreading like wildfire because it presents a unique condition for potential buyers.
Built in 1924, the three-bedroom property was listed earlier this month and is worth $1.8 million, with the current asking price at $488,000, according to The San Francisco Standard.
The catch, however, is that the new owners cannot move in until 2053.
The 100 m² house has a driveway, a garage, a fenced backyard and stands on a 300 m² plot.
According to the Park North Real Estate listing, the home is leased and residents may have 30-year lease rights. The listing also states that tenants pay $416.67 a month in rent, in addition to utilities. The current lease “appears to provide tenants with a high long-term lease rate.”
The property is sold as is, which means that the new owners will become the new landlords of the current tenants.
The greater San Francisco area is one of the most expensive places to live. To afford life in a big city like San Francisco, you would have to earn twice the income of most Americans, according to a May analysis by Moody's Analytics.
The average home value in Russian Hill is $1,468,100, down 5.1% from last year.
The unusual sale is partly due to a family feud, according to The San Francisco Standard.
The current tenants of the house are 83-year-old Sandra Lee and her 66-year-old daughter Cheryl Lee. Sandra's son Todd Lee is trying to sell the house against her will, the media outlet reports.
Sandra told the San Francisco Standard that a lease drawn up by her stepfather, the home's original owner, before his death in 2018 gives her long-term rent control until 2053.
“If it weren’t for the rental agreement, [my son] “If I hadn't known that this was happening in 2018, I don't know where we would be,” she said. “It's unbelievable, the deception, the betrayal – my son is doing this to me.”
Due to the terms of this sale, the listing states that neither the seller nor the agent guarantees access to the home. Buyers are strongly advised to review the seller's disclosure package (which can only be requested via email) and speak with an attorney before making an offer.
Representatives for the Lee family and Park North Real Estate did not immediately respond to CNBC Make It's request for comment.
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