You can own prime property in this Bay Area city for $400,000 but there's a catch...

ByTim Johns KGO logo
Friday, May 24, 2024
For $400K you can own prime property in Alameda but there's a catch
In the never-ending saga of wildly priced Bay Area real estate, this one might be the most shocking of all. For $400,000, you can own prime property in Alameda... but it's all underwater.

ALAMEDA, Calif. (KGO) -- It's one of the most stressful and expensive things you can do in the Bay Area.

For many, house hunting can be a nightmare.

But in the city of Alameda, one property is hitting the market for only a couple hundred thousand dollars.

RELATED: For the first time, median price for a home in California surpasses $900,000

The catch... it's entirely underwater.

"One of the neighbors contacted me and said, 'oh is this a joke?' And I said, no it's not a joke. Someone bought it and they own it now," said April Jones.

Jones is the realtor for the property

She says its owner bought it sight unseen at an auction and was unaware it was actually in the lagoon.

If you want to buy the property, the asking price is $400,000.

Not too bad for the Bay Area.

VIDEO: Looking to buy a home in Bay Area? Here's what $1.7M will get you in Silicon Valley

This is what $1.7 million will get you in Cupertino: A cozy 384-square-foot home, which is a little more than the average size of a hotel room.

However, if you actually want to build on the site, experts say that could cost millions.

Jones says whoever buys it will have to get special approvals and permits before they actually build something.

Checking for things like what type of foundation there is at the lagoon floor, accounting for sea level rise and the fact that it's backed up against a bridge.

"This is unique to me. This is the first time I've come across something like this. I've had some unusual properties in my career, but this is a first," Jones said.

Despite the potential challenges, Jones thinks the property could one day become the perfect home.

"The lagoon area is beautiful. It's peaceful. It's very quiet. It's like having your own little oasis," she said.

RELATED: Santa Clara Co. median single-family home sales prices hit $2M for first time

A tough sell for people like Chris Womack.

"It's funny because that's probably the cheapest property in town," Womack said.

Womack says even though he can't afford to buy it himself, he wonders if all of the extra work required to actually get something built on the site would be worth it in the end.

However, given that this is the Bay Area, Womack predicts someone will eventually scoop it up.

"Alameda's got a good reputation and people will absolutely spend the money. You just got to find the right tech person and they'll get in here and be sure to make it the most expensive property on the block."

Now Streaming 24/7 Click Here