San Francisco Squatter Shack Sells for $100,000 Over Asking Price

A San Francisco home with a collapsing roof, charred interior, and a long-term squatter has sold for $555,000, exceeding its asking price by over $100,000. The property, located at 266 Farallones Street in the Oceanview neighborhood, was sold in a state of disrepair, complete with trash, unresolved city violations, and debris.

Coldwell Banker realtor Janice Lee stated that potential buyers were not permitted to enter the home due to its condition. The property was listed at $449,000 and received multiple bids. Lee noted that the home's condition likely impacted the final sale price, suggesting it could have sold for more if not for the ongoing squatting situation.

The squatter, described by Lee as known to police for shoplifting, had occupied the home since the COVID-19 pandemic. Neighbors reported that the squatter and at least one companion were responsible for fires in the area. The individual reportedly moved in after the elderly owner became incapacitated.

This incident is not isolated in San Francisco. In a separate case in the Sea Cliff neighborhood, squatters took over a $4 million home, prompting intervention from the City Attorney. The new owners of the Farallones Street property will face the challenges of removing the occupants, clearing junk, and undertaking extensive renovations.

According to Lee, dealing with squatters can be complex, sometimes requiring owners to pay them to vacate. The tight real estate market in San Francisco, exacerbated by the AI boom leading to increased demand and prices, contributes to such situations. With a scarcity of homes under $1 million, properties, even those in poor condition, can attract intense interest from developers and buyers prepared to tackle significant rehabilitation projects.