Condemned home with mildew problems, holes in the roof sells for more than $1 million

FREMONT, Calif. – When you think of a $1 million home, you probably envision big gates at the front and a pool.

But a house in Calfornia’s Bay Area is nothing like that. Instead, the home was condemned in 2013 and mildew is eating away at the inside, according to KTVU. You’ll find holes in the roof and plenty of other defects.

The final sale price: $1.23 million for the three-bedroom, two-bathroom home on Bruce Drive in Fremont, California.

A neighbor couldn’t believe the price. Realtor Larry Gallegos told KTVU that buyers were “burning up his phone” with offers. He finally picked one of five all-cash deals.

“We had a couple of offers that were very close. Actually, my client when I first met them wanted a little bit more than that with the price they had in their mind. But they ended up being happy with this one,” Gallegos told KTVU.

The buyer designs green homes and paid $230,000 more than the asking price. He plans to build a 4,000-square-foot home on the lot.

David Stark of the Bay East Association of Realtors said buying a house only to tear it down to build a “dream home” has been a decade-long trend in the Bay Area. He told KTVU that the purchase price reflects the long-held real estate adage about “location, location, location.”