By Eric Berman, REALTOR® | The Eric Berman Team at Compass
TL;DR:
This is the rare relocation where the destination may be more expensive than Long Island, which changes what the move is for — career or life rather than affordability. Two things a New York buyer won't recognize. Tenancy in common is a common ownership form in San Francisco because condominium conversion is restricted, and it works nothing like a condo on financing or resale. And San Francisco levies a graduated real property transfer tax among the highest in the nation, customarily paid by the seller — which matters when you eventually sell rather than when you buy, and is worth knowing before you buy into it.
Start With the Long Island Sale
At three thousand miles this is not optional sequencing. Coordinating simultaneous closings across the country is impractical, and the Long Island transaction sets the budget.
Before touring anything, know what the current home nets — commission, New York State Transfer Tax at four dollars per thousand, attorney fees generally $1,500 to $3,500, preparation, and carrying costs. The full breakdown of what a Long Island sale costs covers each line.
A seller who establishes California residency before the Long Island closing becomes a New York nonresident for that transaction, triggering Form IT-2663 — an estimated payment at closing of 8.82 percent of net gain. A prepayment rather than an additional tax, refundable where the real figure comes in lower, but it reduces the wire.
For a long-held home, the exclusion covers $250,000 single and $500,000 filing jointly, and improvement records reduce taxable gain substantially. The full treatment of how gain is calculated covers the mechanics.
Sell first. The proceeds define what's possible, and in this market that matters more than usual.
This Move May Cost Money Rather Than Save It
Worth stating plainly, because almost no relocation content will.
San Francisco housing costs are among the highest in the country and frequently exceed Long Island's. A household selling a Nassau County colonial and expecting to buy comparable space may find they can't — not at a lower price, and in many cases not at any price within their proceeds.
What that means practically: this is a career or life decision with a financial cost attached, rather than an affordability upgrade. Households that understand that going in make better choices than households that discover it during a search.
The composition of costs also shifts. California property taxes are generally lower than Nassau's, and the reason is Proposition 13 — the state assesses at acquisition value and caps annual increases, so a buyer's assessment is set at purchase and largely stops tracking the market. That's genuinely favorable over a long hold, and the fuller treatment of California property tax covers it along with the supplemental bill that catches new buyers.
Against that: California income tax is among the highest in the nation, everyday costs run higher, and the entry price is the entry price.
Tenancy in Common Is Not a Condominium
This is the thing a New York buyer will encounter and won't recognize, and it deserves real attention.
Because condominium conversion in San Francisco is restricted, tenancy in common has become a common ownership structure for multi-unit buildings. Buyers purchase a fractional interest in the whole property rather than a legally separate unit, with occupancy of a specific unit governed by a written agreement among the owners.
Four things that differ from a condominium, and all of them matter.
Financing. Historically TIC purchases involved a shared mortgage across all owners, which meant one owner's default affected everyone. Fractional financing has become more available, but the lending market is narrower than for condominiums and terms are typically less favorable.
The TIC agreement governs everything — who occupies what, how expenses are shared, what happens when an owner wants out, and how disputes get resolved. It's a private contract among co-owners and its quality varies enormously.
Resale is to a narrower buyer pool. Fewer buyers understand TIC, fewer lenders finance it, and the pricing reflects that.
Conversion to condominium is restricted and uncertain. Some TIC buyers purchase expecting eventual conversion. That expectation should be treated as speculative rather than planned.
None of this makes TIC a poor purchase — the discount to comparable condominiums is real and for some buyers the trade works. What it requires is knowing what you're buying, and having an attorney review the TIC agreement before committing. A New York buyer assuming they're purchasing something equivalent to a condominium is making an expensive assumption.
The Transfer Tax You'll Pay Later
San Francisco imposes a graduated real property transfer tax that rises with sale price and reaches rates among the highest in the nation at upper price points. It is customarily paid by the seller.
That doesn't affect the purchase. It affects the eventual sale, and at San Francisco price points the figure can be substantial — a genuine consideration for anyone who may not stay long.
Worth knowing before buying rather than discovering at resale. Rates and tiers are set locally and change; confirm current figures with a San Francisco attorney or agent.
Two More Local Items
Soft-story retrofit. San Francisco has required seismic retrofitting of certain multi-unit wood-frame buildings with weak ground floors. Whether a specific building has completed required work, and what remains, is a question to ask before purchase — the cost of outstanding work falls on owners.
Tenants in place. The original noted multi-family properties are prevalent without mentioning what acquiring one involves. San Francisco has strong tenant protections, and a buyer takes property subject to existing tenancies and applicable rules governing rents and occupancy. A New York buyer accustomed to different rules should treat this as a central question rather than a detail, with local counsel involved before an offer.
Disclosure. California uses an extensive statutory disclosure regime — a Transfer Disclosure Statement plus natural hazard disclosures covering seismic, flood, and fire zones — and San Francisco adds local requirements. A buyer receives considerably more paperwork than in New York, which is informative once expected.
Closings run through escrow. A neutral escrow company holds funds and documents and coordinates, with title insurance alongside. No attorney is necessarily involved on either side, so a buyer wanting legal review retains counsel separately — and given TIC agreements and tenant issues, many do. The fuller picture of what the attorney handles on the New York side describes what you'd otherwise have.
Practical Logistics
Roughly 3,000 miles — a genuine cross-country move requiring long-haul movers booked well ahead, with vehicle transport standard.
The market moves quickly and competitively, with offers frequently made without extended contingency periods. A buyer arriving from a New York attorney-driven process should understand the pace before they're in it.
Climate is mild rather than warm, with cool summers and pronounced microclimates — neighborhoods a few miles apart differ noticeably. Parking and density are real adjustments from Nassau County.
A Worked Example
Consider a composite case — a Nassau County household relocating for a Bay Area position, selling a colonial that comped near $1,150,000.
The first discovery was that their proceeds bought considerably less space than expected. That reframed the search from "comparable home" to "what works for the next several years," which was a better question anyway.
The second was TIC. Two properties in their range were structured that way, and neither listing explained what that meant for a buyer from outside California. Their attorney reviewed one TIC agreement and advised against it — the expense-sharing provisions and exit mechanics were weak. They passed.
They also learned about the transfer tax, which mattered because the position had a defined term and they might sell within five years.
On the New York side they sold first — necessary at that distance — and their attorney's early title review turned up an unclosed 2016 permit, resolved in five weeks before listing.
Where to Start
Build the net-proceeds model on the Long Island home and sell first. Call the town or village building department about permits. Engage a New York real estate attorney early and talk to a CPA about IT-2663 and capital gains before setting a closing date.
On the San Francisco side: understand what ownership structure any property uses, and have an attorney review a TIC agreement before committing. Ask about soft-story retrofit status on multi-unit buildings. Ask about tenants in place and applicable protections. Understand the transfer tax you'll pay on eventual resale. And decide whether you want your own counsel, since none comes with the closing.
Sellers wanting a current read on where their Long Island home sits can start with a quiet look at present value.
The Honest Bottom Line
This is the relocation in the series where the honest answer is that it may cost money. San Francisco housing frequently exceeds Long Island's, and a household expecting an affordability upgrade will be disappointed. Understood in advance, that's fine — people move for careers and for lives, not only for arithmetic.
What a New York buyer most needs to know is structural. Tenancy in common is common here and works nothing like a condominium, and buying one without understanding the agreement is the most expensive mistake available. The transfer tax arrives later and is large enough to matter for anyone who may not stay.
Both are knowable before committing. For anyone working through what their Long Island home would net before any of that begins, that conversation is available whenever the timing suits.
This is general information, not legal, tax, or financial advice. California and San Francisco property tax provisions, transfer tax rates, retrofit requirements, tenant protections, and TIC structures vary and change. Confirm current specifics with a California attorney and local professionals, and confirm New York specifics with a licensed New York real estate attorney and a CPA.
FAQs
Is San Francisco more expensive than Long Island?
Frequently yes on housing, which makes this unusual among relocation destinations. A household selling a Nassau County home and expecting comparable space may find they can't buy it at any price within their proceeds. The composition shifts too: California property taxes are generally lower thanks to Proposition 13, which caps assessment increases and reassesses only on ownership change, while California income tax is among the highest in the nation and everyday costs run higher. Treat this as a career or life move with a financial cost rather than an affordability upgrade.
What is tenancy in common and why is it common in San Francisco?
Because condominium conversion is restricted, TIC has become a common ownership structure for multi-unit buildings. Buyers purchase a fractional interest in the whole property rather than a legally separate unit, with occupancy governed by a written agreement among owners. Four differences from a condominium matter: financing is narrower and typically less favorable, the TIC agreement governs everything and its quality varies, resale reaches a smaller buyer pool, and conversion to condominium is restricted and uncertain. Have an attorney review the agreement before committing.
What is San Francisco's transfer tax?
A graduated real property transfer tax that rises with sale price and reaches rates among the highest in the nation at upper price points, customarily paid by the seller. It doesn't affect the purchase — it affects the eventual sale, and at San Francisco price points the figure can be substantial. That makes it a genuine consideration for anyone who may not stay long. Rates and tiers are set locally and change, so confirm current figures with a San Francisco attorney or agent before buying.
Does California require an attorney to buy a home?
No. California is an escrow state — a neutral escrow company holds funds and documents and coordinates the closing, with title insurance handled alongside, and no attorney is necessarily involved on either side. A buyer who wants legal review retains counsel separately, and in San Francisco many do, given TIC agreements and tenant protection questions. California also uses an extensive statutory disclosure regime including natural hazard disclosures, and San Francisco adds local requirements, so a buyer receives considerably more paperwork than in New York.
What should I ask about a multi-unit building in San Francisco?
Whether required soft-story seismic retrofitting has been completed and what remains, since outstanding work falls on owners. Whether tenants are in place and what protections apply — San Francisco has strong tenant rules, and a buyer takes property subject to existing tenancies and applicable limits on rents and occupancy. And what the ownership structure is, since TIC and condominium look similar in a listing and differ substantially. All three belong with local counsel before an offer rather than during due diligence.
By Eric Berman, REALTOR® | The Eric Berman Team at Compass
Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com
