San Francisco in no stranger to crazy home prices. However, one listing is raising eyebrows. The asking price? A meager $800,000. The catch? The house was completely gutted by a fire last year.
The one-bedroom, one-bathroom home is located on Grant Street in the affluent Bernal Heights neighborhood. Under normal circumstances, a home in this neighborhood wouldn’t last on the market for too long.
However, this isn’t normal circumstances. The home was completely destroyed by a fire last year. Any new owner would need to demolish whatever is left and completely rebuild the house.
Adding to the insanity, the realtor believes that the house is actually a bargain at only $800,000. In fact, he even expects it to sell for more than the asking price. Demand for housing has been difficult to keep up with in the area, and there is a rush to buy up any available property.
It’s hard to gauge just how large San Francisco’s housing bubble is. Some data supports the theory that San Francisco’s crazy home price increases are due largely to a lack of supply and not demand.
The bay area lot roughly 5,000 jobs last September, it’s worst month for growth since 2010. However, it’s largely believed to be due to a real lack of housing as opposed to jobs.
“The economy in the Bay Area has pushed up against the physical limits of a lack of housing and a lack of places for workers to live” – Jeffrey Michael, director of the Stockton-based Center for Business and Policy Research.
Regardless, it’s hard to fathom paying that much for a burnt out shell of a home. However, given the lack of available housing any new development would likely become desirable to potential buyers.
Have Cash To Burn?
If a burnt out fixer-upper is your style, head west to San Francisco. However, if the bay area’s crazy home prices are too much to handle, perhaps you’re better off looking elsewhere.
In any case, the real estate market varies substantially based on location. A burnt out home in San Francisco might actually fetch $800,000 or more based on extreme demand for available housing. A few thousand miles away in Baltimore, you might be able to pick up the parcel for next to nothing if you’re willing to build on it.
Because cost of living caries, City vs City is a powerful tool for anyone looking to move, buy a house, or switch states. Our patent-pending technology examines the true cost of living within each city (or zip code) and compares them in a side by side match-up.
While it won’t calculate whether or not a property has been destroyed by a fire (yet), it will account for cost of living expenses, state and local taxes, and more. Now that’s a hot deal that’s hard to pass up.