Who wants to share a bathroom with their children?! Not anyone in this office.

Many Bay Area markets are dominated by small homes with only 1 bathroom. In these areas the premium for an extra bathroom is material … as it should be.

Neighborhood Overview: South San Francisco is the self-proclaimed “Industrial City” located just north of San Francisco International airport. While 50 years ago that moniker meant factories, today industrial means Biotechnology. Genentech (Roche) and numerous other Biotech firms call the Oyster Point section of South City home. Proximity to San Francisco either by car or train, along with booming biotech profits has transformed this once middle class city into one of the up and coming parts of the Bay Area. Schools have improved, crime is down and new swanky developments dot the hills. While home values have declined with the rest of the state, we believe South City’s housing market area will emerge as one of the first to stabilize when we move from housing correction into housing recovery.

382 Gardenside Ave, South San Francisco, CA 94080

Original List Price: $649,900
List Date: 3/10/2008
Current List Price: $574,900
Previous Sale: $760,000
Previous Sale Date: 7/22/2005
Estimated Down Payment: $57,490*
Estimated Monthly Payment: $3,376.42*
Bedrooms: 4; Bathrooms: 2
Liv. Area: 1,570 sqft; Lot Size: 4,500 sqft
Positives:
+ 2 bathrooms
+ Centrally located near amenities and public transportation
+ Quiet street with high pride of ownership
Negatives:
- Needs significant updating, improvements
- Floors creak, could be sign of foundation issues
- Back fence doubles as left-center field fence of school baseball diamond

Cirios Valuation Approach:

Step 1: Location

First, we review the subject’s location on Google Earth to see if there are any negative obsolesces. The 2 main detractors are the baseball field over the back fence and a small back yard.

Second, we look for positive factors: The subject is within walking distance of Sunshine Garden Elementary, which is one of the best schools in the city and a short walk to the South San Francisco Bart station. Costco, Trader Joes and Starbucks are all close by.

Step 2: Data Analysis

% of Zip Distressed: 2.3% (Moderate)
% of Zip For Sale: 0.5% (Low)
% of Zip Sold Over Last 3 Months (year-over-year): +19%
Elementary School API: 790 (above average)
AHA (Affordable Home Amount): $461,093

The most concerning number here is the distressed level, since as the economic downturn continues, foreclosures are likely to rise from already elevated levels, pushing down prices. However, supply is currently very low and schools are good, both of which should be viewed as positives. Finally, we are encouraged by the affordability level. Since this property is one of the larger in the neighborhood and could be very desirable after some quality improvements, we expect some higher earners in the area to be interested in the home.

Step 3: Comparable Properties

Please visit www.ciriosre.com and click on “Market Commentary” for our CLEAR valuation with a full list of comparable listings and sales. Note that this property needs work, so is likely to sell below what move-in ready homes are going for.

Step 4: Value Analysis

The subject is one of the larger homes in the area and is in a very desirable location. Our biggest concern is the squeaky floors, which could indicate foundation issues. This concern notwithstanding, we believe this property would attract numerous buyers if it were listed at a slighter lower level than its current list price. As you can see from our CLEAR valuation, we are valuing this property slightly below our comp sale #3 since the subject is slightly smaller but is in a very similar location.

Cirios Value: $525,000
Over-Listed Amount: $49,900 (-8.7%)