Why Offering $1 More on a $10M San Francisco Home Could Cost the Seller $325,000

In San Francisco, offering $1 more could actually make your offer less attractive to a seller. Here's why.

At $9,999,999, the city transfer tax is approximately $225,000.
At $10,000,000, it jumps to $550,000.

That means offering just $1 more could leave the seller with about $325,000 less after transfer tax.

So the highest offer isn't always the best offer. Understanding the seller's net proceeds can make all the difference when structuring a competitive offer. Customarily, the seller pays the city transfer tax. However, if there is a property you really like and want to get, you may choose to pay it yourself.