That there is a shortage of Palo Alto homes and land for sale today to meet the steadily increasing volume of buyers is an understatement. As of this morning, there are 28 homes for sale, 22 of which have an asking price over $1M (yes, that’s 79%). If anyone wants to build a custom home, there are just two pieces of residential land for sale, one asking $12.5M (5 acres from the old Hewlett estate far up in the hills) and the other asking $5M (20 acres, can be subdivided in half). There’s nothing in the local Silicon Valley MLS for the person who just wants to build a nice custom home on an acre or less close to downtown, Stanford University, or local business centers.
Or is there?
If you’ve wanted sell your Palo Alto home or rental property, but have been concerned about its condition, un-permitted construction, or other factors that usually subtract from a property’s value – this could be your lucky market. As hard as it is to find an affordable home in Palo Alto, it’s even more difficult to find residential lots to build on.
Selling solely for the value of the land removes the usual headaches of curing termite damage and making roof, plumbing, electrical and other general repairs prior to sale. The buyer could be interested in the land as a custom home site for himself or for resale after they build. Regardless, demand for Palo Alto homes has created an environment in which any residential lot has significant value.
The one constant in property valuation still applies to all land sales – location. But regardless of where your property is located, this may be a good time to turn that old home into dollars in your pocket.
John A. Souerbry & Associates Tel (650) 815-6182 (DRE 01370983)
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