Bay Area/ Oakland/ Real Estate & Development
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Published on October 25, 2023
From Meth Lab/Bomb Workshop to Million-Dollar Listing: Condemned San Jose House Hits Market for $1.5MSource: Cindy Selleos with Keller Williams Realty-Silicon Valley

The residence at 668 Potomac Court in San Jose, once a meth lab and makeshift bomb workshop, is now listed for sale with an asking price of $1.5 million. The house went on the market yesterday, a mere seven months after a joint police and FBI raid, according to NBC Bay Area. Due to its unsafe conditions, the property is presently condemned, fenced off with chain links, and adorned with warning signs.


Source: Cindy Selleos with Keller Williams Realty-Silicon Valley

Keller Williams Realty is responsible for the sale of the property which is in need of significant renovations and decontamination before habitation. Listed on Zillow, the property will be sold as-is. The listing states that the home, located on a large 6000 sqft lot, once housed an inactive meth lab and remains contaminated. It informs potential buyers that the home will be transferred to its present state.

Peter Karasev, 35, was arrested in March for storing explosive materials, firearms, and narcotics in the home. It was revealed that Karasev resided there with his wife and three young children. He continues to remain in custody and faces additional charges for purportedly planting bombs on PG&E electrical transformers in south San Jose.

Reflecting on the house's $1.5 million price tag, Zaid Hanna, owner of Real Estate 38, expressed his skepticism to KRON4. He anticipates a cost between $200,000 and $300,000 to rehabilitate the home to a safe state, including the removal of flooring, sheet rock, and insulation. Hanna surmised that achieving the asking price would be "a homerun" and would be surprised if they were to secure it.

Despite its dilapidated state and the considerable repair charges, the residence poses multiple selling points for potential buyers. This includes six bedrooms, four bathrooms, and a 6000-square-foot lot. It also has the advantage of being located in a residential neighborhood with a nearby school. Even so, Hanna doubts whether the house is worth the combined cost of the asking price and necessary restoration.

The property's Zillow listing clarifies that access can't be granted until the Santa Clara County Health Department gives clearance. Once decontaminated and cleared for occupancy, there might be potential buyers interested despite its notorious past and extensive renovations.