by Andy Sirkin, Rosemarie MacGuinness and Cam Perridge (January 22, 2013)
This article answers the questions we are most frequently asked by clients who are converting their San Francisco properties to condominiums. The article does not discuss the requirements for qualifying a building for condominium conversion; for a discussion of that topic, see San Francisco Condominium Conversion Laws and Instructions.
How much does the conversion cost? The typical cost for a conversion, excluding possible building repairs (discussed below), is approximately $20,000 for a 2-4 unit building and $28,000 for a 5-6 unit building. Here is an itemized summary:
Conversion Costs - 2013
Survey-Related Services (varies w/size)
City Inspection (varies w/size)
Budget Preparer (varies w/size)
State Application (varies w/size)
3R Report (per structure)
In addition to the fees listed above, most owners will incur fees in obtaining permits and addressing the citations in the building inspection report. Also, condominium buildings require different insurance policies, and these generally are more expensive than policies for apartment buildings. Finally, many of the benefits of condominium conversion cannot be realized without refinancing. The refinance process involves cost and, depending on market conditions, may increase monthly payments.