A new real estate listing in Berkeley has a prime location, a great price tag -- and a highly unusual catch to any potential deal.
The four-bedroom, two-bathroom home is nearly 2,000 square feet and is located in one of Berkeley’s most desired neighborhoods. It is currently on the market for about $395,000, but as the price might suggest, there are some big things for any potential buyer to consider.
The listing holds nothing back. The house, located on a 4,800-square-foot lot, features a great location near Berkeley's "Gourmet Ghetto" neighborhood, but that’s where the perks stop.
According to the listing, the building has had no maintenance done since 1974. Both the roof to the sunroom and garage have collapsed. The home is leaning off the foundation. And there is an active water leak that’s been ongoing for a decade.
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"It’s a risky investment, for sure. But it is a great location,” said JeAnna McGregor, who lives nearby.
The home also comes with an 83-year-old tenant, who will live in the location rent-free for the duration of his lifetime. The house also has an additional tenant who pays rent.
“That's the kind of property a small developer like me really likes,” said Berkeley resident Dan McDunn. “It has opportunity. It’s too far gone for a fix-and-flip-type person. It’s definitely beyond the capacity of an owner-occupant, which usually presents a good opportunity.”
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The house is appraised at $395,000 in an area where homes sell for around $2 million. According to a home inspector quoted on the listing, the home should be torn down.
McDunn, who said he was first interested in the property 10 years ago, still sees its potential.
“No matter what the market conditions are, this location will be a hot commodity and sell quickly. The economics support a higher price,” he said.
The house will not be on the market for long. As of Monday, the property was already pending sale. A local developer plans to restore the home without tearing it down.
Some nearby residents said the roof was re-done in January and they are supportive of the man staying. They hope whoever takes over the property will be able to restore it to its original beauty.
“The neighborhood I think is glad that something is happening because it's a shame to have a house like that,” McGregor said.
