Home sales have been slowing down in the Bay Area for months, but there is a house on the Peninsula that suggests the market may still be too hot for many of us.
A two-bedroom, one-bathroom home in San Mateo that sits behind the Hillsdale Shopping Center needs a new roof and walls replaced, including hundreds of thousands of dollars in other renovations. Don’t think the needed repairs will bring the sale price down — the house is listed for sale at $1.2 million.
“It’s leaking in so many places that we cannot just throw a tarp up there, otherwise I would have,” said Leo Chaudoir with Sentinel Realty Company. “I see a lot of reconstruction.”
So why would someone drop more than a million dollars for a home needing major overhaul?
“You are in San Mateo, the heart of San Mateo,” Chaudoir said. “You’ve got a beautiful hidden park behind you and you’ve got the award-winning Hillsdale Mall sitting right down the street from you.”
Zillow’s Chief Economist Skylar Olsen said the median home price in San Mateo may explain the high cost of the home, adding the current price is likely lower than prospective buyers would have seen a few years ago.
“(Prices) are starting to come down. And would you believe that $1.4 million as a typical home in San Mateo is actually 10% down from where it was in the middle of last year where the typical home was actually $1.6 million,” Olsen said.
Other homes in the neighborhood are valued around $1.5 million to $2 million. The owner of the home up for grabs at $1.2 million passed away and did not have a will, so the county is selling it and will disperse the money to relatives.
“This house sitting somewhere else would probably go for significantly less,” Chaudoir said.
The house is accepting sealed bids through mid-March.
Source: NBC Bay Area
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