Tiny Palo Alto pad was just $40K in the 70s. Now, it’s $2.5M


  • ac544 920x920 Tiny Palo Alto pad was just $40K in the 70s. Now, its $2.5M

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Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services



Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services



Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services


Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Oh, for a time machine. In the 70s, this home cost $40K. Today: $2.5M

Photo: The Troyer Group • Intero Real Estate Services




This home, a modest two-bedroom, one-bathroom in downtown Palo Alto, asks $2.5 million. It’s a rather perfect example of the Peninsula and Silicon Valley real estate phenomenon.

The house

Built in 1904, the home appears to be in nearly original condition.

None of the 960 square feet show evidence of remodeling or updating, but nor are they terribly deteriorated.

There’s a fireplace in the living room, hardwood floors, and a kitchen with decorative cabinet work.

There’s nothing actually wrong with this house. We’ve seen far more dramatic examples of old, occasionally dilapidated homes in Palo Alto asking over $2 million.

In 2016, for example, an outright teardown listed for $5.5 million.

Still, a new buyer for this property is clearly encouraged to “rebuild or renew,” via the listing language.


The value is in the land

This abode’s real value lies in the 5,625-square-foot lot. This lot is in downtown Palo Alto.

The area, based on market acitivty over the last 30 days, enjoys a median listing price of $4.5 million, a sale-to-list ration of 112 percent, and a value of $1,572 per square foot.

ALSO, A stately home on a huge San Francisco lot asking $1.9 million

That last figure makes the listing price for 235 Webster about a million dollars too high, but only if we forget to value the large lot and all its potential.

Give us the time machine!

The last time records show this home selling was 1970; then, it was $40,000. Today, it’s more than 60 times that much, and being sold with the expectation that someone will drop at least a few multiples of $40,000 in remodeling.


But then, this is Palo Alto, with its confluence of factors: proximity to the Silicon Valley, Stanford, and San Francisco; heavy foreign investment; and limited supply for high demand.

And 235 Webster Street will indeed be in high demand.

See the full listing here. 

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert

Article source: https://www.sfgate.com/realestate/article/235-webster-st-palo-alto-2-5M-13040216.php

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