San Francisco, CA (PRWEB) October 25, 2012
The Real Estate Marketing Insider issued its statement on the new Silicon Valley trend of tearing down older homes and rebuilding on their lots, saying it might be harmful to the housing industry in the area as real estate dollars aren’t being used to increase the ever-thinning housing inventory.
According to the Wall Street Journal, real estate buyers employed by the Silicon Valley tech companies are buying existing houses, tearing them down and using the land to build sleek, modern homes. The existing homes in the area are getting multiple offers for the sole purpose of tearing them down and replacing them with contemporary designs. This trend started around 2010, and has caught the attention of real estate branding professionals all over the valley.
Among the Silicon Valley heavy-hitters building on cleared lots are Facebook COO Sheryl Sandberg, Steve Lawrence and Jim Miller of Google, and Talkatone CEO Danis Dayanov.
During the last generation of techies in Silicon Valley, traditional styles of architecture like Craftsman and Mediterranean were popular for new homes, and the Valley quickly filled with new real estate in those designs. This particular generation, newly wealthy from the last wave of startups like Google, Facebook and LinkedIn, is more excited about modern-contemporary architecture, and so are buying lots, leveling the existing homes and rebuilding homes in newer architecture.
The costs for these new homes can be exorbitant, because they necessarily require buying the existing homes and and the cost of tearing them down. Sheryl Sandburg, COO of Facebook, purchased a 2900-square-foot home in Menlo Park for $2.9 million, in order to tear it down and build a 9200-square-foot contemporary mansion on the lot. Danis Dayanov’s prospective 5000-square-foot modern villa has already cost $2.1 million for the land and the destruction cost.
These new projects are replacing the homes of former big fish who favored more traditional styles. Businesspeople who owned homes in the old styles of architecture include the late Steve Jobs, formerly of Apple; Google Executive Chairman Eric Schmidt; and Meg Whitman, CEO of Hewlett-Packard.
The offers for existing homes can be many and exorbitant; a home can get up to fifteen offers, and the offers can be $400,000 above the asking price, all with the intention of tearing down the home. This new trend is causing some consternation among some neighbors of these lots, who bemoan the increases in size and boundaries of the new structures.
The Real Estate Marketing Insider issued its comments on a report in the Wall Street Journal of a Silicon Valley real estate trend of buying, wrecking and rebuilding. Investors are buying homes in the area, tearing them down, and building in their place homes in trendier contemporary-modern architecture styles.
About Real Estate Marketing Insider: Based out of La Jolla, CA, Real Estate Marketing Insider provides hot tips, news, and trend analysis to real estate professionals.