Buying in San Francisco With Par Hanji

BUYER BOOK

“ R ecognizing the need is the primary condition for design.”

— Charles Eames

WHERE DO YOU WANT TO LIVE? San Francisco is a collection of neighborhoods, each with its own distinct main street and assemblage of eclectic architectural styles and property types. Whether it is a house or TIC in one of the many Victorians or Edwardians in the Upper Market neighborhoods, or a condo in one of the modern skyscrapers or rehabilitated lofts in the South of Market neighborhoods, deciding where and how you want to live is a central part of the home-buying process. Privacy, accessibility to public transportation, nightlife, distance from work, parks, shopping, etc. will all play into this important decision.

SINGLE FAMILY RESIDENCE

TENANCY IN COMMON (TIC)*

A house in the traditional sense and often also called SFD, SFH, or SFR. It is a residential building usually occupied by just one household and consists of just one dwelling unit.

A form of fractional ownership in which each owner owns a percentage of the property with no right of survivorship in the other owners. A detailed written agreement describes each owner’s exclusive rights to use and occupy particular dwelling units, along with assigned parking, storage and deck areas.

STOCK CO-OPERATIVE (CO-OP)*

CONDOMINIUM

A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.

A form of real estate ownership in which the owner receives title to a particular unit—generally a separately owned space whose interior surfaces (walls, floors and ceilings) serve as its boundaries—and has a proportionate interest in certain common areas.

*Both Co-ops and TICs tend to require specialized financing for purchase

THE HOME-BUYING PROCESS 1 CONSIDERATIONS Needs, wants and priorities Purchase timeline Financial parameters and costs Buyer-agent relationship

2 PREPARATION Financing pre-approval Assessment of market conditions & values Learning property types Neighborhood pros and cons

3 SEARCH Listing information review Home tours and open houses Exploring options/Learning the market Finding the home you wish to buy

4 THE OFFER

5 ESCROW Creation of timeline of events Opening of escrow account Buyer good-faith deposit Preliminary title report

6 DUE DILIGENCE Lender appraisal Property inspection & investigation Review of disclosures and reports Removal of contingencies of sale

7 WEEK BEFORE CLOSING Final walkthrough Review and signing of closing documents Buyer final deposit Funding of loan

8 DAY OF CLOSING

Property documents review

Recordation of the deed

Comparative market value analysis Negotiation of best terms and price Offer acceptance

Close of escrow Delivery of keys Move-in

FINANCING YOUR PURCHASE Your lender is a crucial part of your team. This will make or break a deal.

STEP 1: REVIEW FINANCING OPTIONS

STEP 4: LOAN APPROVAL

Financing your home purchase begins with consultation with a qualified loan agent. We can recommend one with the requisite experience, competence and integrity. There is a wide array of loan options, and the one that works best for you depends on a number of factors: your financial wherewithal and future plans, the monthly housing expense you are comfortable with, cash available for down payment and closing costs, how long you plan to own your new home, etc. You may wish to consult your accountant regarding financial and

The property has appraised satisfactorily and all supporting documentation approved by the lender. The lender issues a formal loan commitment letter, and the purchase contract’s loan contingency is removed.

tax implications.

STEP 2: LOAN PRE-APPROVAL

STEP 5: LOAN DOCUMENTS After formal loan approval, the loan documents are drawn up and sent by the lender to the title company. After careful examination, you sign these and other closing documents; they are then notarized by the escrow agent and returned to the lender for final review and funding.

Your home search should begin with obtaining formal loan pre-approval so that you fully understand your financing options, what you can afford, and what your closing costs and ongoing housing expenses will be. A lender pre-approval letter significantly strengthens your position when it is time to make your purchase offer to the Seller. Your loan agent will guide you through the pre-approval process, which involves the submittal of your loan application and accompanying documentation to chosen lenders regarding employment, income, assets, debts, and credit history.

STEP 6: FUNDING

STEP 3: YOUR OFFER IS ACCEPTED ON YOUR NEW HOME

The legal documents transferring the property into your name

You have already been loan pre-approved; now the lender must approve the specific purchase terms and the property itself. This involves review and approval of the purchase contract, property appraisal, Preliminary Title Report, and any other supporting documentation required. Depending on the lender, the property and specific circumstances, this process typically takes from fourteen to thirty days.

legally recorded with the County Clerk. The funds in escrow are

The lender funds the loan, depositing the loan amount into the escrow account. You deposit any additional monies necessary to complete the purchase such as the remainder of your down payment and closing costs. These final monies are typically delivered by cashier’s check or bank wire.

STEP 7: RECORDATION OF TRANSFER OF OWNERSHIP & CLOSE OF ESCROW and the deed of trust pertinent to the property’s new loan are then disbursed, as appropriate, to the Seller, the Seller’s lender and other involved parties or service providers. Escrow is closed, and you are now the owner of your new home!

CLOSING COSTS SELLERS GENERALLY PAY

BUYERS GENERALLY PAY

Brokerage commissions

Title Insurance premiums

Real Property Transfer Taxes County Property Transfer Taxes

Escrow fee

Payoff of existing property loans

Inspection reports (pest, contractor, engineer, roof, etc., as desired)

Statement fees, reconveyance fees and any loan prepayment penalties

Pro-rated property taxes (from date of acquisition)

Pre-sale inspection reports (as desired)

Loan points and fees

Third-party Natural Hazards Disclosure Statement

Appraisal fee

City Resale Inspection Report

Interest on new loan from funding date to 30 days prior to first payment

Home warranty (according to contract)

Home warranty (as desired)

Any judgements, tax liens and delinquent taxes recorded against property or seller

Homeowner’s Insurance for first year

Property tax proration (for any unpaid taxes up to time of transfer of title)

Earthquake insurance (optional)

Any unpaid homeowner’s dues

Supplemental property taxes

Homeowner’s Association document fee

Pro-rated Homeowner’s Association fees (for condominiums)

Any bonds or assessments (according to contract)

Private Mortgage Insurance (PMI) if required by lender

Notary fees and recording charges

Insurance Impound Account if required by lender Property Tax Impound Account if required by lender

Courier fees

Notary fees and recording charges for all documents in buyer’s name

INSPECTIONS AND HOME WARRANTY BUYERS ARE RESPONSIBLE FOR INSPECTING THE PROPERTY The purchase agreement typically contains provisions allowing you to perform any inspections you desire. Inspections do not guarantee the condition of the home; their purpose is to educate you regarding the home’s current condition and how to maintain it in the future. Inspections are completed within a contractually specified time period, typically 10-15 days. If you are satisfied with the condition of the property, you remove the inspection contingency and proceed with the sale. If you are not satisfied, you may cancel the contract or negotiate with the Seller. In the latter, purchase price may be adjusted, a credit may be given in escrow, or the Seller may perform work prior to close of escrow.

WHO PAYS FOR INSPECTIONS? Typically, the Buyer pays for inspections. Pest control inspections range from ~$350 to $500 and contractor’s inspections range from $400 to $800 depending on the size of the home.

It is important to use qualified professionals; we can recommend inspectors in every category.

HOME WARRANTY PLANS Several home warranty plans are available that provide insurance for the major systems and basic appliances of the home. The cost is approximately $350 to $500 per year depending on the extent of coverage. These plans can easily pay for themselves should a covered item need repair or replacement.

STRUCTURAL PEST CONTROL INSPECTION

ON FINAL WALKTHROUGH, BE SURE THAT:

Sometimes referred to as a “Termite Report,” it examines all types of insect and fungus damage (Section 1) as well as conditions that could lead to damage (Section 2). This inspection is performed by a specially licensed contractor who must inspect properties according to criteria established by the State Board of Pest Inspection.

• Required repairs have been made

CONTRACTOR INSPECTIONS A general contractor’s inspection will assess the overall condition of the home from foundation to roof, including electrical, plumbing and heating, basic structure, as well as the quality of the finish work. Other recommended inspections may include structural engineering, soil conditions, fireplace and furnace. The inspection period is useful for obtaining estimates for repairs and improvements you plan to make later.

• You obtain copies of paid bills and warranties • All items included in the sale (appliances, window coverings, light fixtures) are present in the home • All appliances are operating • Intercom, doorbell and alarm are operational • Heating and air conditioning systems are working • No plants or shrubs have been removed from the yard • Garage door opener and other remotes are available • Instruction books and warranties on appliances and fixtures are available • Hot water heater is working • All personal items of the seller and all debris will be removed by close of escrow

PROPERTY TAXES THE TAX YEAR Property taxes are charged on a fiscal year beginning July 1 and ending June 30; hence tax years are referred to as 2017/2018, 2018/2019, and so forth. Taxes are billed in two equal installments: first installment covers July 1 through December 31, second installment covers January 1 through June 30. Tax bills are sent to homeowners in the last week of October. Tax payments are due November 1 and February 1; tax payments are delinquent on December 10 and April 10.

HOW TO CALCULATE PROPERTY TAXES The assessed valuation in your first year of ownership will be the same as the purchase price. Current tax rate is 1.163% of the final purchase price. City Assessor’s office may increase up to 2% per year for each year you own the property.

MELLO-ROOS COMMUNITY FACILITY DISTRICTS

Mello-Roos districts are designated areas which have issued bonds for community facilities, for example, earthquake retrofitting of schools, and for which annual tax levies are collected as part of the property tax billing.

SUPPLEMENTAL TAXES

Upon change of ownership, the Assessor’s Office will reappraise the property and will bill the new owners for any difference in taxes resulting from a higher assessed value. The Assessor will issue you a supplemental assessment bill which is prorated based on the number of months remaining in the fiscal year ending June 30.

DEC 10 1st Installment Deliquent @ 5pm

MAR 1 Assessment Date FEB 1 Due: 2nd Installment

JAN

FEB

APR 10 2nd Installment Deliquent @ 5pm

MAR

APR

MAY

JUL 1 Beginning of Fiscal Year

JUN

JUL

NOV 1 Due: 1st Installment

AUG

SEP

OCT

NOV

DEC

CAN YOU DISAGREE WITH THE AMOUNT? You may apply to the Assessor to see if that office will change the valuation. Additionally, Appeals Boards have been established for the purpose of resolving valuation problems.

Appeals on regular assessments may be filed between July 2 and September 15. Appeals on corrected assessments, escaped assessments (those that did not take place when they should have), or supplemental assessments must be filed no later than 60 days from the mailing date of the revised tax bill. If you choose to appeal, pay your tax installments in full by the deadlines or you may incur penalties. If the appeal is granted, a refund will be issued to you.

DID YOU RECENTLY PURCHASE A PROPERTY? Escrow prorates taxes, but the actual taxes may not have been paid and you are responsible for any unpaid taxes at escrow closing. Read your escrow papers to determine if any portion of annual taxes were paid by the previous owner prior to closing. The Tax Collector will not send a bill for the remainder of the year in which you acquired the property unless requested. If any taxes remain unpaid, call the Tax Collector and request a bill; have the Assessor’s Identification Number before calling.

ABOUT PAR I grew up in New Delhi in a beautiful, open home whose rooms surrounded a veranda that served as our family’s central hangout. My time there is eternally stamped in my memories by seemingly endless socializing, meals, festivals, and holidays on that veranda—we never locked our doors, and friends came and went. Where people come from so often informs where we go, and I didn’t understand my fascination with my current airy, tree-lined home in San Francisco until I returned to New Delhi. Now I’m a realtor here in SF, and I always know how to get my buyers and sellers what they want because I ask them one question before anything else:

What rooms have you loved in your life, and why?

HI, I’M PAR HANJI. I’ve worked my way into the top tier of San Francisco realtors through three ways:

EXTENSIVE RESEARCH

TRANSPARENT WORK ETHIC

FEARLESS NEGOTIATION

I believe in research, and I do my own. My background in tech has made me organized and efficient, and I know that the more info you have on hand, the less intimidating the housing market is—whether you’re buying or selling. People who have found the experience to be confusing at best or nightmarish at worst feel that way because they didn’t have all the data. The data is out there, but while many agents put the onus on their clients to undertake certain key research themselves, I personally don’t believe you should have to. Real estate is a team project and I’m your team leader, so you can depend on me.

Transparency can make or break transactions and relationships alike, so I make sure you’re with me every step of the way. I talk to contractors and inspectors, I research permits, and I pull information on behalf of even the other agent. I share it all with you with links to my sources because you deserve to have all the information you could possibly need to make a carefully considered decision before we move forward, and time is of the essence.

Relationships are paramount to success in real estate, so I’m honest to a fault, I work relentlessly, and I don’t just listen to you, I hear you.

I fight for you like you’re my family.

Can you walk away from an offer that is unacceptable to you? Because I can. I’m a Stanford-trained negotiator who maintains a calm and unyielding front while we break molds and set market trends by refusing to settle, so that you can get what you want. I learned a long time ago you don’t know what you can get until you ask, and I’m not afraid to ask for anything. I guarantee you no one commission check will make or break my career, so don’t ever worry about me pushing you into accepting an offer as a seller, or making one as a buyer; this process is about you, and getting the outcome you want, your way.

MY BUYERS

are in the house of their dreams within three months and two offers—after that we re-strategize to ensure the third offer is the one.

MY SELLERS get thousands of dollars over asking price: my last clients got an extra $125,000 because I countered all seven offers that came in at market value, confident that market value does not always constitute a ceiling.

DRE 01437260

15 YEARS OF DEDICATION & COUNTING My value and integrity as an agent are grounded in my professional experience, my commitment to staying actively involved in organizations that further my knowledge and keep me sharp, and my dedication to giving back to my community through volunteerism and charity.

CREDENTIALS & AWARDS

EXPERIENCE

•

Top 3% REALTOR® in San Francisco

•

REALTOR® Associate, Compass San Francisco

•

Stanford-trained in Negotiation Mastery, Advanced Theory in Negotiation, and Critical Communication in Negotiations

•

Account Manager, Netscreen Technologies, Sunnyvale

•

Account Manager, Proxim Wireless, Sunnyvale

•

Account Manager, Memec United, San Jose

•

Top 1% grossing Account Manager

•

Three-time President’s Club Winner

•

Regular contributor to SF Gate’s real estate section

PROFESSIONAL AFFILIATIONS •

National Association of REALTORS

•

California Association of REALTORS®

•

San Francisco Association of REALTORS®

•

Global Business Council

•

Young Professionals Network

•

Top Agent Network

•

Leading Real Estate Companies of the World®

NONPROFIT VOLUNTEERISM •

Board member and volunteer for Rooms That Rock 4 Chemo, and Compass Community Fund

•

Volunteer for Habitat for Humanity, SF-Marin Food Bank, PAWS, and Rooms that Rock 4 Chemo

®

CHARITABLE CONTRIBUTIONS • • • • • • •

AIDS Foundation KQED de Young Museum EarthJustice SF-Marin Food Bank Planned Parenthood Foundation for a College Education

COMMITMENT TO COMMUNITY I am committed to the betterment of our community. Through volunteer efforts and charitable donations, I, along with Compass, actively support local organizations in efforts to improve the City and the living conditions of others. A portion of my commission goes to supporting initiatives including shelters, school arts programs, food drives, and counseling. I participate in the services that many organizations perform in order to make a positive difference in our community.

I’m proud to say that our Community Fund has contributed $1M to local organizations!

RECENT RECIPIENTS Family Builders By Adoption

Maitri

Support for Families

Family House, Inc.

The San Francisco Community Fund

Gateway High School

AIDS Memorial Grove

EARN

Random Acts

CASE

Project Night Night

Dance Out Diabetes

Claire Lilienthal School PTA

Music In Schools Today

Rooms That Rock for Chemo

edMatch

GSA Network

Brandeis Hillel Day School

Project Eye-to-Eye

Zambaleta

Musical Theater Works

SF/SPCA

Our Family Coalition

Stonestown Family YMCA

Grupo De La Comida

Leadership High School

Leah’s Pantry

Jewish Family and Children’s Services

North Beach Citizens

Richmond/ERMET AIDS Foundation

Little Brothers-Friends of the Elderly

Mission Graduates

Hearing and Speech Center

Enterprise for High School Students

Glide Foundation

Community Housing Project

Centro Las Olas

Seven Teepees

SF Sewing and Quilting Collective

Stop AIDS Project

Leap Arts and Education

A TOP AGENT WITH OVER $120 MILLION IN SALES

Agent percentiles are estimates based upon San Francisco MLS residential property sales, per Broker Metrics. Compass data is based upon total agent sales closed in period.

20 18 16 14 12 10 8 6 4 2 0

SF AGENT AVERAGE

TOP 10%

TOP 5%

PAR HANJI

RECENT SALES ADDRESS

TYPE

BD

BA

PK

LIST PRICE

Condo

2

2

1

$2,200,000

251 Hartford Street

SFD

3

3

1

$2,500,000

1446 Moraga Street

SFD

3

2

1

$1,531,000

Condo

2

2

1

$1,560,000

1478 6th Avenue

SFD

3

1

2

$1,850,000

1693 7th Avenue

SFD

3

3

2

$1,725,000

183 Brompton Avenue

SFD

4

3

2

$2,075,000

4226 25th Street

SFD

4

3.5

2

$2,950,000

2161 Turk Blvd

Multi-Unit

5+

5+

5+

$1,915,000

542 Joost Ave

SFD

2

1

1

$1,300,000

430 Elizabeth St

Condo

2

1

1

$1,470,000

615 Ellsworth St

SFD

2

2

1

$1,415,000

323 Orizaba Ave

SFD

4

3.5

1

$1,380,000

163 Mangels Ave

SFD

2

2

1

$1,325,000

44 Vista Verde Ct

SFD

3

3.5

2

$1,690,000

1177 California, No. 724

Condo

2

2

4014 25th St

Condo

2

1

SFD

4

3.5

320 Alabama St, No. 11

Condo

3

2.5

1

$1,600,000

3468 17th Street

Condo

3

1

1

$1,500,000

4014 25th Street

Condo

2

1

-

$1,475,000

1207 Indiana St, No. 20

Condo

2

2

1

$1,200,000

900 Minnesota, No. 116

Condo

1

2

1

$1,200,000

3934 Cesar Chavez St

Condo

2

2

1

$1,420,000

SFD

2

1

2

$1,500,000

301 Mission St, No. 30E

301 Main Street, No. 18E

70 Tingley

224 Roanoke St

$1,740,000 -

$1,475,000 $1,600,000

AN UNPARALLELED TEAM FOR CUSTOMIZED STRATEGY ANALISE SMTIH-HINKLEY Marketing Director Analise specializes in copywriting, brand identity, and strategic marketing. A UC Berkeley alumna, Analise has spent a decade in Bay Area marketing and PR in industries from Higher Ed to e-commerce. Breadth of experience and a love of both analytics and people have gifted her with a uniquely varied perspective that extends beyond real estate. She works personally for my team to ensure our efforts are cohesive and our exposure is comprehensive.

PATRICK CARLISLE Chief Market Analyst Patrick is a real estate statistics and analytics genius who knows the market better than anyone.

With decades in the business as first an agent and now our Chief Market Analyst, Patrick is always on hand with a statistic or graph for anything. His thoughtful approach and data savvy translates into real estate success for our team.

MICHELLE DELL’ISOLA Transaction Coordinator

SOPHIA LEE

Listing Coordinator

ANITA MARIE HEAD

Managing Broker, Special Projects

SALLY STULL

Managing Broker

SUCCESS BUILT ON ENSURING YOURS I’m backed by my brokerage, Compass, which helps me take a tech-driven, personalized approach that combines a collaborative agent community, in-house creative support, and the industry’s most tenured leadership team.

•

Compass technology helps me give you the best insights, with superior real-time market data and top-of-the-line analytics to better price your home when you’re ready to sell, and determine the best time to be on market for the highest possible price.

•

Compass knows marketing: Syndicated listings in 52 countries, 800+ international websites, and on Compass.com where traffic averages 1.9M+ monthly page views.

•

Compass is the #1 real estate brokerage in the Bay Area with more than 20% market share and an extended personal network of 4,000+ agents; this vast network gives us a deeper reach within the broker community.

1.9M+

150+

Avg monthly page views on compass.com

Compass designers, creative producers, and marketing strategists hailing from top brands

“ALL ROADS LEAD TO PAR” “ Par came highly recommended as a sellers’ agent by two sep-

feel like you are the only people on Earth buying a home. I can-

arate people, and I can see why! When we first met, she actu-

not recommend her highly enough. This dame is a savvy, inven-

ally recommended that I *not* sell my condo right away, as the

tive & humorous house tiger who graciously fights for the needs

market had not sufficiently recovered from its earlier downturn.

of her clients in a way that other realtors clearly jive with. She

Instead, Par continued to assess market conditions and, when

was/is on-top of every part of the home-buying process and we

the time was right, contacted me about selling my place. Once

felt like we were in (beyond) good hands—even when we had no

I made the decision to sell, Par was amazing—from her market-

idea what we were doing as 1st time home buyers. We will never

ing, to her creativity, to her negotiation expertise. One week and

use another realtor.”

five offers later, she got me an offer at 15% over my asking price.

– Katie

That’s 25% higher than what I would’ve received when I thought about selling a few years ago. I have and will continue to refer Par to my friends and colleagues.”

“ Abraham Lincoln once said, ‘Things come to those who wait, but only the things left by those who hustle.’ My wife and I feel ex-

– Frank

traordinarily privileged to have worked with a woman who knows how to hustle and get things done. Par is an agent you want on

“ A truly dedicated agent, Par worked diligently selling my condo

your side. She sprang into action and was a reliable advisor, as

in San Francisco. She was fully prepared and blew me away by

she helped us get the property we wanted, and then worked

the depth of her knowledge. She will always be highly recom-

tirelessly on the due diligence of the sale. And, when I say tire-

mended to my family and friends.”

lessly, I mean, she was answering emails at 11 pm—on Sunday – Stephanie

nights, and answering every single question we threw at her! She got us the space under severe time constraints, and impressing

“ I’ve had the pleasure of working with Par on different projects.

She is efficient, able to determine the type of property that you

us with both her tenacity and professionalism.”

– Tim and Patty

are interested without wasting anyone’s time or energy. I’ve feel comfortable enough with Par’s efforts to refer her to family mem-

“ This lady is made of steel, and it’s no surprise she has all five star

bers and other colleagues. If I have any real estate questions or

reviews. While I ran into her by chance, a little research showed

need for exploration, Par is on my list to call first.”

she’d be a good choice. Most of the time it felt like I was her – Rodney

only client, she’s always available to meet and never in a rush.

Par knows the market very well, and was incredibly quick to un-

“ I never write referrals—but I have to in this case, because Par is

derstand my preferences and multiple constraints. When it came

an 11 out of 10 type person. She is hands down, THE BEST real-

to the buying process itself, her connections were invaluable -

tor in the Bay Area…a one-of-a-kind human-to-home connector,

whether it was in finding the right lender, dealing with agents

who listens to her clients and immediately surfaces appropriate

and inspectors, developers or building managers.”

listings with personalized + lightening speed, that makes you

– Arnar

If I can make this one part of your life efficient and exceptional then I have done my job. I will collect data, I will get to know you, and I will ask the right questions with the right information. Together we will get you everything you want, the way you want, on your time.

Give me a call. Tell me about your favorite room.

415.307.5110 PAR@PARHANJI.COM