Why Is That San Francisco Property So Much Cheaper Than the Condos Nearby?

If you've spent any time searching for homes in San Francisco, you've probably seen it.

A property appears in a neighborhood you like.

The location looks great.

The interior looks similar to nearby condominiums.

But the price is noticeably lower.

What's the catch?

Sometimes, the answer is that the property isn't actually a condominium.

It's a TIC.

A Tenancy in Common allows multiple people to own fractional interests in the same property.

For buyers, TIC ownership can create opportunities to purchase in neighborhoods where traditional condominiums and single-family homes may be significantly more expensive.

But cheaper doesn't automatically mean better.

It also doesn't mean worse.

It means different.

TIC financing is specialized. Not every lender offers it, and the available loan programs, down payment requirements, and interest rates may differ from traditional condominium financing.

The ownership agreement matters too.

Buyers should understand their rights, responsibilities, and how expenses and decisions are handled among the owners.

That's why I recommend reviewing the financing before writing an offer.

I've seen buyers dismiss TICs because they assumed they couldn't be financed.

I've also seen buyers become interested in a TIC because of the price without understanding how the financing worked.

Both mistakes can be avoided.

If you're considering purchasing a TIC, start by understanding the structure and financing.

Then decide whether the opportunity fits your goals.

Sometimes a lower-priced property isn't a red flag.

It's simply a different path to homeownership.

— Michael Belfor

American Pacific Mortgage