908 sq ft teardown house in Silicone Valley=2.6M!

Another day, another postcard from the increasingly bizarre alternative universe that is Silicon Valley.

This time, it's the eye-popping story of a 908-square-foot, lovely-seeming home in Palo Alto, California, that hit the market in February for an asking price of $1,927,000.

Not only did the Stanford Avenue home, built in 1937 and described by Curbed San Francisco as a "teardown," sell, the site reports it brought in $623,000 over the asking price — that's a final sale price of $2,550,000.

Curbed reports:

Complete with hardwood floors, a brick wood-burning fireplace and exposed wood beam vaulted ceiling, the well-worn abode was lovely in its own right. But the real selling point here was the lot, approximately 7,500 square feet of it, and the location, four blocks from California Avenue and around the corner from Peer Park.

In all likelihood, this home will be torn down for a new construction.

One commenter on the post pointed to a truer example of a teardown less than a mile away, on Oberlin Street in Palo Alto: a 760-square-foot two bedroom home sold "as is" at the end of 2016, in what appears to be serious disrepair, for $1,315,000.

The listing for the house and lot on the Girouard Properties website advertised it as "an opportunity to build your dream home."

Living room, 280 Standford Avenue, Palo Alto, California
Photo via Golden Gate Sotheby’s International Realty, Dawn Thomas, listing agent
Living room, 280 Standford Avenue, Palo Alto, California
The house on Stanford Avenue is only the most recent, and hardly the most egregious, example of the burgeoning bubble on the Bay.

In the last two months, we've reported on the Twitter employee earning $160,000 a year who says he's just scraping by in San Francisco, the Facebook engineers earning between $100,000 and $700,000 a year who asked Mark Zuckerberg to subsidize their sky-high rent and the fact that Google employees could buy five houses for the price of one — if they left Silicon Valley.

http://fm.cnbc.com/applications/cnbc.com/resources/img/editorial/2017/05/04/104448899-Soth_Palo_Alto.1910x1000.jpg?v=1493922744

A tech bro bought it.....or rich Chinese

Cool little house though. Obviously the price is ridiculous.

Price has very little to do with the house itself and everything to do with the cost of the 7,500 sq.ft. Lot at the given location.  Hence - totally makes sense for it to be a tear down.

In other words the bare lot is probably worth $2.5M by itself... and it's worth that much because someone is willing to pay that much for the lot.

 

Damn what a bargain! Need the name of that agent.

jbc -

Price has very little to do with the house itself and everything to do with the cost of the 7,500 sq.ft. Lot at the given location.  Hence - totally makes sense for it to be a tear down.

In other words the bare lot is probably worth $2.5M by itself... and it's worth that much because someone is willing to pay that much for the lot.

 

Well duh, still the price is bubbly

Crazy thing is that the bubble may not even be close to bursting.... and may just continue to grow.

Tim Duncan - http://fm.cnbc.com/applications/cnbc.com/resources/img/editorial/2017/05/04/104448899-Soth_Palo_Alto.1910x1000.jpg?v=1493922744

Super common in Palo Alto. 

Yep. My uncle sold his place on Hale St. For 3.1 million. It was listed at 2.7.

The new owner tore the house down and built new lol. Different world out there

The original owners should have destroyed the old house and built a new house...and then sell it...probably would have made a lot more money

GucciGucciGucci -


The original owners should have destroyed the old house and built a new house...and then sell it...probably would have made a lot more money

Probably not. Anyone who can pay 2.6 mill for this lot is going to spend another mill or 2 on the house.

On the other end of the spectrum you have people living in cars and rvs

https://youtu.be/KG0_KiM9Mv8

Know a dude whose grandma bought 10 houses in PA area. They sold.1 and got a beach front pad with and in law unit. Dude doesn't work and live in the in law. Mom just pays the bills off grandmas money I guess

That's crazy Tim Duncan! I guess it's all about the location...

tf1 -

Super common in Palo Alto. 

Yup. Except im still surprised because I always assume the rich already bought them all and already rebuilt. Its like, " there's still some shacks in Palo alto?!"

GucciGucciGucci -


The original owners should have destroyed the old house and built a new house...and then sell it...probably would have made a lot more money

Yeah dude no. The ppl who are selling these home are not new owners. They may have owned for 50+ years. No life to rebuild and probably bought for $40k. No joke