Another Wave of the Bubble Wand: A $6.5M Crapbox in Palo Alto
Yesterday we had a brief summary of snapshots showing that we are indeed entering the early stages of a new real estate bubble. Far-flung areas are still far below their ridiculous 2005-6 peak pricing, and nearby but unloved neighborhoods are being scraped up by investors rather than the outbid mortgage mooches.
But core Real Bay Area listings near high-paying tech jobs are at or even above their insane 2008 peak pricing. Yes, 2008. Crap areas hit their high-water marks much earlier than premium places, and it’s the high end that has come back first and letting us know it. We promised we had a doozy for you today, and we weren’t kidding. Thanks very much to Burbed reader Wendie for bringing by the bubbly by the carboy.
Location, Location, Location! Teardown: $6.5 Million
Need proof that the Palo Alto housing market has heated up?
By Beatrice Karnes; February 8, 2013
It’s not enough to live in Palo Alto—homebuyers want to live in specific neighborhoods. A home in Old Palo Alto has gone on the market and it’s being advertised as a tear-down or a remodel. Asking price: $6.5 million.
It’s a simple, middle class home built in the mid-1930s and boasts four bedrooms, 3.5 bathrooms, hardwood floors, some linoleum or vinyl floors, and a one car garage.
Let’s have a look.
1935 WEBSTER ST
Palo Alto, CA 94301
$6,500,000Active
Type: Single Family Home
MLS #: ML81303410
SqFt: 3,009
Beds: 4
Lot Size: 16,610 SqFt
Baths: 3 Full / 1 Partial
Year / Age: 1937 / 76Prestigious Old Palo Alto location. Rare opportunity to remodel or build new on a large lot. Possible subdivision, Buyer to verify with City of Palo Alto. Built in 1935 by William Wurster. Detached recreation room with workshop, dark room and half bath.
Let us count the ways that this is Dutch Tulip Fever all over again:
- A teardown, for Six. Point. Five. Million. Dollars.
- A teardown, but you could remodel. After spending Six. Point. Five. Million. Dollars.
- A teardown, 78 years old (2 years too young for the “old house” tag)
- A teardown, with a named architect.
- A teardown, sold for its potential to build two houses. But why stop there, bribe the appropriate agencies and cram in four! Heck, how about a 20 story condo tower? Buyer to verify with City of Palo Alto.
- A teardown, with 22, yes twenty-two mostly similar photos in full HDR. Have you ever seen HDR photos of a workshop, a basement, or a garden hose left on the ground? You’re about to.
Do not miss this Rare opportunity to be able to Walk To Steve Jobs’ House.
February 10th, 2013 at 9:28 am
Love the tulips!
February 10th, 2013 at 10:11 am
It’s different this time.
They aren’t making any more land.
Better buy now before rates go up!
This is a new paradigm.
etc
February 10th, 2013 at 10:51 am
The premium pricing is for the fact that it is rare to find such a large parcel in Palo Alto, especially Old Palo Alto. On a by square foot basis Palo Alto has the most valuable land in the Bay Area. The property across from Steve Jobs was sold last year for $11 million, and it was a tear-down as well. For that price you can get a magnificent new mansion in Atherton on a larger lot.
February 10th, 2013 at 11:16 am
Sorry about the link to the house listing going walkabout. (I added in it twice and it disappeared twice when I wrote this.)
Here’s the property across the street from Steve Jobs that we covered. Perhaps #3 was referring to a different “across the street from Steve Jobs” property, as this one changed hands in October for nine million after a $10.25M ask. And it’s 10,000 sf more than today’s property as well as being closer, much, much closer, to the Jobs residence.
So, #3, is a 22% error in price more characteristic of a real estate amateur or a real estate professional?
February 10th, 2013 at 11:31 am
“changed hands in October for nine million after a $10.25M ask.”
Over a million in so-called underbidding in P*** A***?
CRAZY!
February 10th, 2013 at 11:39 am
#4,
Keep in mind
1) There is already a $3M difference. That’s a lot of money!
2) That was last year. Read the news. Prices have gone up.
February 10th, 2013 at 11:41 am
Six times “not a lot of money” = “a lot of money.”
February 10th, 2013 at 11:44 am
#6, is this hand-waving trying to distract from your confusing subtraction with addition?
February 10th, 2013 at 6:58 pm
Stop the in-fighting, boys and girls. The most expensive property in the U.S. is not even in the Bay Area, but in Dallas Texas:
http://blog.sfgate.com/ontheblock/2013/02/08/dallas-mansion-asks-largest-sum-ever-for-private-residence/?plckItemsPerPage=50&plckSort=TimeStampDescending
You are NOT #1!
February 10th, 2013 at 7:32 pm
Thanks for the link featuring yet another Real Estate “professional” “journalist” who doesn’t understand the difference between an asking price and a selling price.
February 10th, 2013 at 7:35 pm
‘confusing subtraction with addition’ translation: math by real estate agent.
February 10th, 2013 at 7:43 pm
#10- Have you not learned, asking price is always smaller than selling price. Always.
February 10th, 2013 at 7:44 pm
Hmm, given a choice between this place and a 7,000 Sq Ft custom home on 81 acres with a lake in a great part of Sonoma County for $4.5MM…Prolly best to settle for a timeshare condo on the Salton Sea.
February 10th, 2013 at 8:18 pm
Check the reader comments. Will Bay Area people please tell us what you really think of Texas??
February 11th, 2013 at 12:15 am
Bay Area People don’t know if Texas is fact or fiction, and if Texas did exist beyond some fantasy, no one in the Bay Area would care.
February 11th, 2013 at 9:32 am
This house made the front page of SFGATE today.
http://www.sfgate.com/
February 11th, 2013 at 12:46 pm
The second one (Noe Valley) is awesome. The kitchen pic with the oven door on the floor is priceless.
February 11th, 2013 at 6:54 pm
Head to head: Bay Area vs. Texas
March 15th, 2013 at 2:38 pm
Pending.
May 1st, 2013 at 3:25 pm
Sold for $6.5M