Checking T.I.C. Sold Prices for 2-Unit Buildings is a Tricky Treat
In San Francisco, if a 2 unit building is being sold as 2?”vacant” units with no?past tenant issues?- the highest possible price for a Seller is to sell to?two owner-occupier Tenant-In-Common (TIC) Buyers with both TIC Buyers looking for the upside potential of condo converting the property after one year of?owner-occupier TIC ownership.??
As a Seller’s agent, I would?market the property 3 ways to attract 2-TIC Buyers, investors, and owner-occupiers with an income producing unit:
- Two separate TIC units with two distinct “for sale” prices for each of the 2-units in the building.
- One?2 unit building with combined for sale prices of the 2-TIC units in the building.
What gets tricky is how a Seller’s agent reports the sale prices accurately?on the MLS at the close of escrow???without reporting all three sales prices (i.e. the 2 TIC sale prices and the one 2-unit building).?
Many times, I see with the San Francisco MLS, seller????s agents reporting that their 2-unit property was withdrawn from the MLS and the 2-TICs are reported as sold on the MLS with two sales prices.?
And then, many of these?online public websites show the property????s sales price from the public records as a 2 unit building sold while other websites will show that there were 2 sales at on the property, yet not differentiating whether these two sales were?condos or TICs sales.
Thus a 2-unit vs. the TIC?market analysis both become rather complicated to determine whether a property is over or under valued to the for the unlearned, the novice, or misinformed.
The treat is understanding the value of buying?a 2 unit building and the upside potential of buying in this market.
