Developers are eyeing a 384-square-foot home in California’s Silicon Valley that is listed for $1.7 million. The one-bedroom, one-bathroom home is situated in a quiet cul-de-sac in Cupertino, neighboring homes worth $5 million. It is described as “cozy” and has the potential for a buyer to personalize it to their tastes. The property’s proximity to major commute routes makes it appealing to professionals looking for easy access to Silicon Valley’s tech hubs.
Despite the high price tag, there have already been six offers on the property as of Wednesday. The location of the home plays a significant role in its value, with the potential for a developer to construct a new house on the spacious lot, potentially doubling or tripling the investment upon resale. The opportunity for expansion is seen as worth the significant cost by many real estate professionals in the area.
Buyer’s agent Maxwell Dukelow noted that the home is the smallest he has seen for sale in Cupertino in over a decade, but the potential to expand and increase the property’s value makes it an attractive investment. The idea of building a larger home on the lot and selling it for a higher price is a common strategy for buyers in the competitive Cupertino market. Broker, contractor, and real estate developer Alex Chiao expressed that the $1.7 million asking price did not surprise him and may even sell for more if it is purchased quickly.
Although the price seems high, Compass real estate agent Faviola Perez mentioned that the home is still the most affordable single-family home in Cupertino currently on the market. The desirable location of Cupertino, known for its high household income and top-ranking public schools, makes it a sought-after area for families and investors. Perez emphasized that unlocking the value of the property may require some effort but could lead to a significant return on investment.
In a similar real estate trend, a 750-square-foot home in Denver was sold for $1.2 million within 10 days in November 2023. The three-bedroom home, built in 1941, was situated next to the popular McWilliams Park, driving up its value due to its location. The hot commodity status of these small homes reflects the influence of location and the potential for buyers to expand or renovate properties for significant resale value. Strong demand for homes in prime locations like Silicon Valley and Denver continues to drive up prices and competition among buyers.
