Land is California’s new gold, and the rush to get a piece of it online can turn heads when browsing real estate listings.
This month, a seven-bedroom, two-bathroom home is for sale on a 4,000-square-foot lot. on the market for almost $700,000 in the Burbank neighborhood of San Jose. It may seem like a bargain, but that’s because the house has been condemned by Santa Clara County: it’s not safe to live in by government standards. And although its multiple kitchens, exterior staircase, and neon teal paint baffle locals online, real estate agents say it’s not nearly the most expensive abandoned house you can find in Silicon Valley. Rather, it’s just one example of how attractive the market has become for investors seeking land value in one of the most expensive and expensive areas of California. with local housing problems.
“Basically, right now you’re thinking about the value of the land,” Robert Gosalvez, the real estate listing agent, told San José Spotlight. “What is the cost of reconstruction? How big can I rebuild? How many units?”
The price doesn’t surprise Tammie Peters, a Los Gatos real estate agent.
“Honestly, that’s not high for a condemned house,” Peters told San José Spotlight. “It’s just in the numbers. Many years ago, houses sold for $700,000, in good condition.”
The house at 2161 Elliott St. appears to have a buyer.
“We cannot yet reveal the final price, but we received three offers above the asking price. We should close the sale next week,” Gosalvez said. “It was kind of a mixed conversation between buyers hoping to be able to remodel or rent, but in the end, it sounds like you’re going to need the help of a general contractor.”
Purchases of confiscated homes cannot be financed with loans.
“There were a number of violations that needed to be addressed to make it habitable,” Gosalvez said.
Gosalvez said one could easily find abandoned homes for up to $2 million if they are surrounded by $3 million or $4 million homes in more expensive neighborhoods a couple of miles away.
“It just shows the demand for the Bay Area,” he told San José Spotlight. “It’s simply the number of people who want to buy Silicon Valley versus the people who want to leave. “It shows what people really want at the end of the day: good weather, good schools, parks, nearby universities.”
US News and World Report’s ranking of the 25 best places to live places San Jose at No. 4. The ranking is based on a wide range of factors according to the report’s methodology, including housing affordability, well-being of residents and the labor market.
San Jose has been mulling ways to increase the city’s housing stock and has focused on streamlining the approval process for homeowners to build accessory dwelling units, also known as granny flats. The city has 23 pre-approved construction contractors to help residents expedite approvals within approximately three months of submission. Projects must begin construction within 12 months of approval, or the permit will expire. City officials say less than 1% of permits expire.
San Jose’s program has seen approximately 1,400 backyard homes built over the past five years, representing about 23% of San Jose’s new housing stock during that period, Mayor Matt Mahan said in a letter to residents. county supervisors.
“With the new ADU options, someone could put two of them on the property,” Peters told San José Spotlight. “Land is the new gold rush. We’re not going to get any more out of it.“
Contact Brandon Pho at [email protected] or @brandonphooo on X, formerly known as Twitter.
