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747 Palermo Dr
Santa Barbara, CA

747 Palermo Dr

$1,595,800
3 bd • 2 ba • 1,177 sf

This analysis was generated by artificial intelligence on 1/24/2025. It is for entertainment purposes only and should not be considered as real estate or investment advice.

List Price

$1,595,800

Price/Sq.Ft

$1356

Year Built

AI Property Analysis

A comprehensive evaluation of this property's features, market position, and investment potential.

The Good

The property at 747 Palermo Dr, Santa Barbara, CA 93105 boasts several positive attributes. Its location in Santa Barbara offers a highly desirable coastal lifestyle with a Mediterranean climate. The Spanish-style architecture with a clay tile roof adds charm and fits perfectly with the local aesthetic. The lush, well-maintained landscaping creates excellent curb appeal and suggests pride of ownership. The property features a spacious front yard with a manicured lawn and a beautiful stone pathway, adding to its overall appeal. The 3-bedroom, 2-bathroom layout in 1,177 sqft is efficient and suitable for small families or couples. At $1,595,800, while expensive, it's relatively in line with Santa Barbara's notoriously high property values, especially given the median income of $109,018 in the area. The potential rental income for a 3-bedroom home in Santa Barbara is strong at $4,040 per month (2023 data), suggesting good investment potential with a gross yield of about 3% annually.

The Bad

The price per square foot of $1,355.82 is significantly higher than many other markets, even for Santa Barbara. This high cost may limit the pool of potential buyers. The house size of 1,177 sqft is relatively small compared to the national average, which could be a drawback for some buyers, especially given the high price point. The lack of listed features or a detailed property description makes it difficult to assess any recent upgrades or unique selling points, potentially putting the property at a disadvantage in a competitive market. The unknown year built raises concerns about potential hidden issues or outdated systems that may require costly updates or replacements.

The Ugly

The extreme price point of $1,595,800 puts this property out of reach for many buyers, even those with above-average incomes. The total monthly ownership costs could be prohibitively high, potentially exceeding $8,000 per month when factoring in mortgage payments (assuming 20% down), property taxes (estimated at 1.25% of property value annually), insurance (higher due to wildfire risk), and maintenance. Santa Barbara's susceptibility to natural disasters, particularly wildfires and earthquakes, poses significant risks and could lead to very high insurance premiums. The lack of information about the property's age and features suggests potential for major system replacements or upgrades being necessary in the near future, which could add substantial costs for the new owner.

Who is this property for?

These details are presented solely for entertainment purposes and are not meant to steer or limit any prospective buyer.

Best For

This property is best suited for affluent buyers with a household income of $300,000+ annually, who prioritize location over space. It's ideal for those seeking a lock-and-leave property in a desirable coastal California location, such as retirees, vacation home buyers, or high-income professionals who work remotely. Investors looking for long-term appreciation in a consistently strong market might also find this property attractive, given Santa Barbara's limited housing supply and enduring appeal.

Not For

This property is not suitable for first-time homebuyers or those with moderate incomes, given its high price point and potential for additional costs. Families requiring more space or those seeking a primary residence with room for home offices would find the 1,177 sqft limiting. Budget-conscious investors looking for high cash flow returns would likely find better opportunities elsewhere, given the high purchase price relative to potential rental income.
Demographics
Area Median Income

$109,018

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Risk Assessment

Risk Analysis

Santa Barbara faces significant wildfire risk, which could impact insurance costs and property safety. The area is also prone to earthquakes, necessitating additional insurance and potential retrofitting costs. The unknown age of the property raises concerns about potential structural issues, outdated systems, or non-compliance with current building codes. The high price point puts the property at risk of market fluctuations, especially if economic conditions change. Strict local regulations and historical preservation rules could limit future renovation or expansion possibilities. The small size relative to the high price may limit resale potential in some market conditions.

Financials

Monthly Costs

Location & Comparables

Subject Property
Comparable Sales
View on Zillow

Stats in the Area

Average Price

$1,084,667

-32.0% below list price

Median Price

$1,100,000

Based on 6 recent sales

Price per Sq.Ft

$960

Comparable Properties

1776 Calle Poniente, SANTA BARBARA, CA 93101
Price: $1,625,000
Sq.Ft: 1,222
Beds/Baths: 3/2
$/Sq.Ft:
$1,3301.9%
Sale Date: 11/20/2024
675 Northview Road, SANTA BARBARA, CA 93105
Price: $1,100,000
Sq.Ft: 1,230
Beds/Baths: 2/2
$/Sq.Ft:
$89434.0%
Sale Date: 10/10/2024
1227 Stonecreek Road #C, Santa Barbara, CA 93105
Price: $860,000
Sq.Ft: 952
Beds/Baths: 2/2
$/Sq.Ft:
$90333.4%
Sale Date: 11/24/2024
3639 San Remo Drive #16, SANTA BARBARA, CA 93105
Price: $915,000
Sq.Ft: 1,046
Beds/Baths: 2/2
$/Sq.Ft:
$87535.5%
Sale Date: 10/9/2024
1209 Rebecca Lane #A, SANTA BARBARA, CA 93105
Price: $875,000
Sq.Ft: 952
Beds/Baths: 2/2
$/Sq.Ft:
$91932.2%
Sale Date: 11/4/2024
3853 Cinco Amigos, Santa Barbara, CA 93105
Price: $1,133,000
Sq.Ft: 1,354
Beds/Baths: 3/2
$/Sq.Ft:
$83738.3%
Sale Date: 10/18/2024

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