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How Agents Get More Listings with SB-9 in San Francisco

SB-9 creates opportunities for real estate agents to secure more listings by helping homeowners maximize their property's value. In San Francisco, where housing demand remains high, SB-9 allows homeowners to split lots and add residential units, increasing their property’s marketability. Understanding how to leverage these opportunities can position agents as experts in lot redevelopment and attract more clients.

Case Study: Increasing Property Value Through SB-9

An investor in San Francisco decided to purchase a single-family property with a large lot. After reviewing zoning regulations, the property was deemed eligible for an SB-9 lot split and additional residential units. With a total allowable floor area of 2,520 square feet, he explored ways to boost equity and generate rental income.

Step 1: Identifying Eligible Properties

Agents begin by researching properties that meet SB-9 criteria. In San Francisco, RH-1, RH-1(D), and RH-1(S) zones permit lot splits and additional units under SB-9. The local development standards, such as height restriction of up to 20 feet from the ground level and lot coverage limits, determine how much new housing can be added.

By using CityStructure’s property analysis tools, agents quickly identify qualifying properties, allowing them to target potential sellers more efficiently.

Step 2: Educating Homeowners with Mailers

Many investors are unaware of how SB-9 can enhance their property value. Agents can use direct mail campaigns to explain how SB-9 allows them to split their lot or develop a duplex. Providing personalized property reports with branding enhances credibility and helps investors visualize the financial benefits.

Step 3: Conducting a Lot Split Analysis

Once an investor expresses interest, a feasibility study assesses the new lot’s market value. In this case, new construction significantly increased the total property value by up to $1,800,000. Agents collaborate with professionals to evaluate zoning regulations, infrastructure requirements, and local market trends.

Step 4: Managing the Lot Split Process

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After confirming feasibility, surveyors complete the lot subdivision. Investors typically cover the cost of this process upon finalizing the split. Agents should establish a network of reliable surveyors and consultants to ensure smooth transactions for their clients.

Step 5: Listing the New Lot and Homes

Once the lot split is complete, agents put the newly created lot up for sale. The additional residential units attract interest from investors, developers, and prospective homeowners. In this case study, the property brought in annual rental income ranging from $33,000 for a one-bedroom unit to $49,560 for a three-bedroom unit, making it an appealing investment choice.

Optional: Securing Buyers Before the Split

To minimize risks, agents can secure buyers before the lot split is finalized. Marketing to investors or developers early in the process accelerates sales and provides investors with greater confidence in moving forward.

Conclusion

SB-9 allows real estate agents in San Francisco to assist investors in unlocking hidden property value, increasing both listings and sales potential. By employing targeted marketing, conducting professional lot analyses, and engaging with buyers strategically, agents position themselves as trusted experts in lot redevelopment, ultimately growing their business in San Francisco’s competitive real estate market.

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