How much would you pay for a 1 bedroom shack?

The Alameda Times today put on the cover of their Real Estate section the photo of a new and upcoming property in Alameda, a relatively cute residential area in the San Francisco/Bay Area.
If you are looking for a cozy cottage to call home then this might just be the property for you. This piece of property has 2 cottages built on it, with each cottage having only one bedroom. But as you can see from the photo, they have tons of charm!
But what makes this property so attractive is its oh-so-affordable Bay Area sticker price... Before you continue reading, think for a second about how much you think this property is worth. Picture the number in your mind. Remember the number. Now read on.

This property can be yours for a mere $619,000. But don't let that number get your down. That number is only the asking price. Because if there is one thing I have learned living in the Bay Area, is to never underestimate how much someone is willing to bid over the asking price just for the privilege of living here.
Manhattan may very well be more expensive then the Bay Area. But at least in Manhattan you know what you are getting into when you walk through the front door of an open house: the price homes are listed at closely reflect what the market is willing to pay. Not so in the Bay Area where you may easily be lured into an open house and think to yourself, "finally, a home I like and that I can afford." Barely afford, yes. But afford nonetheless. But what you don't realize is that unless you are willing and able to pay $100,000 over asking, then forget it. You are looking in the wrong place. Not only the wrong neighborhood, but possibly the wrong city.
Or perhaps a 3-bedroom 2-bath house is really too-much-house for your spouse and two kids. Perhaps you should consider a smaller house and be creative with how your use that walk-in closet adjoining the 200-square foot master bedroom suite.

Comments

[Ian Kennedy]

If a one bedroom shack is $620k, it only makes sense that a two bedroom shack is $1.3 million. At least they've paved the lawn so you don't have to pay for yard service!