Even with the high home prices in the Silicon Valley, would you buy a burned-out house for $400,000? NBC Bay Area's Kimberly Tere reports from such a home selling for that price, and possbily more, in San Jose.
Even with the high home prices in the Silicon Valley, would you buy a burned-out house for $400,000?
The owners of such a home in San Jose are asking that much for their fire-ravaged property. And it might even be a bargain in a neighborhood where the average sale price nears $1 million.
The Northern California home is very close to downtown and steps from San Jose State University. These are two great selling points, according to realtors.
There isn't a lot of inventory in the Bay Area real estate market, but there is high demand. So while some might look at this place and say, "Wow! What a mess!" others see it as a great investment.
One couple in the market for a home recently looked at the property.
"It’s partially burned, but it probably has a lot of opportunities to build it and make it a nice house," potential buyer Farokh Eskasi said.
Realtor Bernie Sinsay said there is a very real chance the property could go for well over the asking price.
"Is that land worth $400,000? At first blush, I wouldn’t say it’s worth $400,000, but I’ve been really surprised at things that have gone on the last few months," Sinsay said. "Stuff that I didn’t think would go for what it did, did."
Sinsay said he already has three or four clients who are interested in looking at the property, which he said will likely have to be taken down to the studs and rebuilt.
He says the average price for a home in this neighborhood is in the $800,000 range.
Neighbors said the home was abandoned for years before fire destroyed it in June 2012. They also said they would love to see the land purchased and the home rebuilt.