Another, are you kidding about the listing price? I think they used the sale of the farm off Walnut and Guardino about 9 years ago which was around $53,100,000* for just under 14 acres. That gives land in Fremont in the roughly downtown area a value of approximately $3,792,857 an acre (this parcel is just over 2) and for the sake of argument to build a comparable home would cost $1,013,200. So, land ($7,585,714) + home ($1,013,200) gives this improved property an already extremely generous $8,598,914 value. I anticipate that someone like Robson Homes could buy the property and build homes around the “historic” (just means old) home giving it an increased value. But based on the likely rejection of development by the NIMBYs of Fremont and its location across from questionably safe train tracks across the street I’m not sure it’s worth the extra $4,900,985.
https://www.zillow.com/homedetails/38555-Overacker-Ave-Fremont-CA-94536/25017384_zpid/
There is also a smaller comparable 0.67-acre, improved property around the corner from the above for $2,748,888 which has already had a price reduction of $140,000.
https://www.zillow.com/homedetails/38860-Cherry-Ln-Fremont-CA-94536/299072064_zpid/
I’m just outlining that these overvalued properties are a sign of problems in the market. Will someone buy these properties, likely to redevelop, of course. Do I think they are paying too much yes. Why is this a problem? Every overpaid lot for redevelopment drives up land value and the density of the proposed housing projects isn’t enough to meet housing needs. The circle of real estate insanity continues.
For the cost to build a comparable home, I went with $400 per square foot. Costs are all over the place but here is one of the links I used to determine building a home. https://www.houzeo.com/blog/how-much-does-it-cost-to-build-a-house-california/
Other links
http://shapeourfremont.com/index.html
*Missing from the title report but this is the link I used for reference: https://www.redfin.com/CA/Fremont/1031-Walnut-Ave-94536/home/903471
Adam Moura 