It’s a designated monument and a contributor to a historic district with a very stringent design review board.
Every repair would have to be approved by the city and the district board. Adu law is strong in my state, but the board can make me build in historical style, not visible from the street, and 750 square feet max. It’s also in a hillside zone, which triggers really expensive foundations compared to flat land. It is filled in to look flat though, and has been that way for a century.
There’s small 1910 barn that has a permit on file, but the house itself is too old to have an original permit on file.
It needs: 750k in “conforming” work done to it in order to max out its value at 900k. Even getting it habitable would be a tall order. It has a 6 foot tall brick foundation with almost no mortar left in the joints. One of the corbeled chimney tops is about to roll off the tall and very steep roof. A specialized historic mason will have to do all of that. Much of the 30 windows and exterior wood detailing need extensive repairs and:or replicas made. Lead paint chipping off everywhere, huge holes in the tar shingle roof. Electrical and plumbing need total replacement-lots of surface mount work that isn’t working. City will require me to move it all into the walls.
I think it’s clear we need to find an eccentric historic house benefactor buyer bc I suspect most investors would look at this something like this:
Value of home fully restored - cost to repair - negative historical premium* - risk premium - profit margin = value now
This would make it worth less than zero, but then equilibrium forces would act on it, settling the final value at X.
* the historical protections make it worth less than raw land to investors since raw land can be built to a high density in this area. If this lot weren’t historic, a developer could build 10 units by right.
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source https://www.reddit.com/r/RealEstate/comments/1un6i71/untouchable_historic_teardown_on_quarter_acre/
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