We're in contract on our first home!

After six months of serious searching and four offers, we are finally in contract on an Edwardian single-family home in the sunny Potrero Hill neighborhood of San Francisco. We have been looking for a fixer-upper with more than 1500 square feet for under a million dollars. Our preferred neighborhoods were Potrero Hill, Mission Dolores, Glen Park, and perhaps Noe Valley. Eventually, we want the house to be a 4 BR / 3 BA home, accessible to public transportation, and with lots of light (high ceilings, space, maybe views).

We'd been outbid on three properties, mostly by buyers coming in with all cash, so we decided to change our bidding strategy. One thing that made our offer competitive was removing as many contingencies as possible... but not to the detriment of our security.

For example, we had a general inspection of the place before the seller was to accept offers, so we could write a contract without any inspection contingencies. Of course, this means we had to put up $550 even if we didn't end up getting the place, but considering the value this added to the offer and that at most we'd probably only do this a few times, it was well worth it.

We also removed the financing contingency, because rates were fairly stable and we weren't concerned about our ability to get a loan. This was a bit of a risky move, but we were prepared to handle the consequences. We did include the appraisal contingency, because the new HVAC regulations surrounding FHA loans have made the appraisal process a lot less dependable.

So, here are the stats:

• the property was listed way below-market, at $800,000;
• after much debate, we offered $925,000 with the above contingencies removed;
• there were six other offers, and we still feel like we got a good deal;
• we're expecting to put in around $300,000-400,000 of renovations over time to make it our dream home.
  

A new blog for a new home.

My husband and I are starting a blog on buying and renovating our first home! We're doing this for a few reasons:

• to keep friends and family informed about the status of the renovation is going;
• to provide a reference for others who are interested in buying and renovating their first home;
• and to journal and track the process and resources required, for ourselves.