A luxury home in the trendy Russian Hill neighborhood, San Francisco, has been listed for just over a quarter of its worth.
In a neighborhood known for the most crooked road in the world, there has to be a catch. The kicker of what seems to be a bargain is that potential buyers will not be able to move into the house for decades.
An Offer too Good to Turn Down
The property is an Edwardian-style three-bedroom house that was built in 1924. The house is 1,100 square feet with a driveway and a backyard with a fence. It is painted in a delicate pale blue and is quintessentially San Franciscan.
The value of the property is around $1.8 million, but is listed at $488,000, which is just over 25% of the value’s worth. On paper, it ticks all the boxes.
Buyers Cannot Move in for Decades After Purchase
Deals this good are often too good to be true, and while this deal seems like a bargain, there is a catch.
A condition on the sale of the house is that any potential buyers will not be able to move into the property until 2053. According to the listing, the current tenants of the house have a strong and controlled long-term lease with possible occupation rights for 30 years.
The Tenants Have a Water-Tight Lease on the House
The reason buyers cannot enter the property as residents until 2053 is because of the long-term rent-controlled lease that the current tenants have on the property.
The listing states that the tenants’ rent is locked in at $416.67 per month, plus utilities. This means that any buyers would resume the position of the current owners and would become the new landlords of the people who would still live at the property.
A Cheap Lease in a Pricey Neighborhood
The Metro area of San Francisco is one of the most expensive places to live where a family of four can expect monthly costs of $5,480 before rent. The city’s cost of living is 9.1% cheaper than New York.
Even to the most frugal of San Franciscans, it is clear there has to be something going on behind the scenes for a lease to be both this cheap and this reliable.
The Family Feud Behind the Sale
A family feud is the reason why the tenants of the property have such airtight occupation rights.
The story of the sale is not that of a dodgy owner trying to get a deteriorating property off their hands. This is the story of a son who is pulling the rug under his mother’s feet by selling the house against her wishes.
A Son Selling Against His Mother’s Wishes
Sandra Lee, 83, told the San Francisco Standard that she lives in the house with her daughter, Cheryl Lee, 66. The owner of the property is her son, Todd Lee.
Todd Lee is selling the house so that potential buyers will become the new landlord for his mother and sister. However, it is not just a conflict based on an unwanted sale.
The Darker Family Saga Behind the House Sale
The previous owners of the house were Sandra’s parents, Florence and Kenneth Goo, who bought the house for $52,000 in the 1970s and stayed there until they passed away in 2006 and 2018, respectively.
Sandra told the San Francisco Standard: “We had a large family. Now we’re destroyed.” She is referring to years of conflict between herself, Todd, and her brother, Cedric Goo.
Taking Advantage of the Tenants
Sandra told the Standard Friday that she does not want her son to sell the property. The stronghold the lease has on Todd is the tool that has saved her and her daughter from being cast out of their family home.
Sandra said that Todd and Cedric Goo took advantage of her and her daughter and betrayed the trust of Sandra’s stepfather by fabricating lawyer fees and selling the house from under her.
The Lease Has Been a Mother’s Saving Grace
Sandra said that if she had it her way, the house would not be for sale at all. She claimed her stepfather, Kenneth, created the rental lease in secret to protect her tenancy at the property.
Sandra said, “If it wasn’t for the lease that [my son] didn’t know about that was made in 2018, I don’t know where we’d be. It’s unfathomable, the deception, the betrayal.”
San Franciscans Are Flocking to Check Out the Property
Despite the unorthodox offer Todd Lee has put on the table, local residents in San Francisco have rushed to the property to take advantage of such a bargain.
Ilia Smith, a neighbor, told ABC7 News, “My husband came in and said, ‘You’ve got to look out the window. There’s a line from the house all the way to the middle of the block.’”
Good Things Come to Those Who Wait
A potential buyer can expect at least a discount of two thirds on a house in Russian Hill, where the average property is $1,468,100.
Landlord tenant attorney, Steve MacDonald, told ABC7 News, “It’s for a very, very unique buyer that’s willing to get a big discount.” There are huge savings to be made for a buyer who is willing to wait a few decades to move in.
