Fire-ravaged Silicon Valley home gets $1.6 million offer, but doesn’t sell

Feb. 08--SAN CARLOS -- The four-bedroom, four-bathroom home on Alameda de las Pulgas in San Carlos made news last month with its high price tag, even though the kitchen had been destroyed in an accidental fire, rendering the house unlivable. But even that flaw wasn't enough to deter buyers -- further evidence of the strength of the Bay Area's housing market.

Nevertheless, the owner has opted to take the two-story, 2,350 square-foot home home off the market, fix the kitchen and re-list the property this summer -- hopefully for an extra $1 million.

"He decided he'd rather wait and put it back on because he'd probably come out ahead," said Re/Max Star Properties agent Debbie Lamica.

Even without a kitchen, and with pervasive smoke damage throughout the rest of the house, the property received 14 or 15 offers -- including one at the $1.6 million asking price, and several below, Lamica said.

But those offers all came from investors looking to renovate the property and flip it. To protect their profit margin, they couldn't pay full market value, Lamica said.

Once the fire damage is repaired, the home will be attractive to buyers who want to live there rather than sell, she said. She expects the home will sell for as much as $2.6 million. In San Carlos, four-bedroom homes were selling for a median price of $1.76 million in December, according to Zillow.

The repairs likely will cost several hundred thousands dollars, which will be covered by insurance, Lamica said.

If the San Carlos house had sold for its $1.6 million asking price, it wouldn't be the first time a seemingly undesirable Bay Area home has sold for a fortune. In April, a home that had been completely gutted by fire sold for more than $900,000 in San Jose. A condemned house sold for $1.2 million in Fremont the month before.

Still, experts say the Bay Area market seems to be cooling slightly, if only temporarily. Homes are taking longer to sell and price reductions are becoming more common. That means big returns may no longer be guaranteed -- making the San Carlos' home owner's decision a bit of a gamble.

"It's not as aggressive a seller's market as it used to be," Lamica said. "We talked about all those risks, and he decided he'd rather wait and take his chances and hopefully make a little bit more money on the property."

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