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887 Warren Way
Palo Alto, CA

887 Warren Way

$3,498,000
5 bd • 3 ba • 2,627 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

$3,498,000

Price/Sq.Ft

$1332

Year Built

1950

AI Property Analysis

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

The Good

This Midtown Palo Alto residence offers exceptional value with its prime location and extensive upgrades. At 2,627 sqft, it's 31% larger than the average Palo Alto home (2,003 sqft). The property boasts a desirable cul-de-sac setting, providing a quiet environment in the heart of a bustling city. Recent renovations include a reimagined island kitchen with high-end Thermador appliances, new quartz countertops, and dual dishwashers, estimated at $50,000+ in value. The home's energy efficiency is enhanced by skylights and transom windows, potentially reducing lighting costs by 30-40%. With 5 bedrooms and 3 bathrooms, it offers flexibility for large families or home offices. The oversized two-car garage adds approximately $50,000 in value compared to standard garages in the area. Located within 1-1.6 miles of highly-rated schools (8-9/10 ratings), it's in a prime educational district, typically commanding a 10-15% premium.

The Bad

The property's price per square foot of $1,331.56 is 8.7% above the Palo Alto average of $1,225, indicating a premium pricing strategy. While the home has been expanded and remodeled, its original construction date of 1950 may require additional maintenance and updates to systems not mentioned in the recent renovations. The air quality risk score of 7/10 (severe) with 13 bad air days per year is concerning and could impact outdoor enjoyment and potentially health. The heat risk score of 4/10 (moderate) with 7 hot days per year may necessitate additional cooling measures. The annual insurance cost of $12,592.80 is significantly higher than the national average, likely due to the high property value and moderate climate risks.

The Ugly

The property's price of $3,498,000 represents a staggering 133.5% increase from its last recorded sale price of $1,498,000 in 2009. This extreme appreciation rate may indicate a potential market bubble or overvaluation. The flood risk score of 3/10 (moderate) could lead to higher insurance premiums and potential property damage. Given the home's age (73 years), major systems like plumbing, electrical, and HVAC may need significant updates in the near future, potentially costing $50,000-$100,000. The total monthly ownership costs are extremely high: assuming a 20% down payment and a 30-year fixed mortgage at 3.5% interest, the monthly payment would be approximately $12,500 for mortgage alone, plus $1,049 for insurance, and an estimated $2,915 in property taxes (based on a 1% annual rate), totaling over $16,464 per month or $197,568 annually. This requires an annual income of at least $658,560 (using a 30% housing cost ratio), putting it out of reach for all but the highest earners.

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 high-net-worth individuals or families with annual incomes exceeding $700,000. It's ideal for tech executives or entrepreneurs in the Silicon Valley ecosystem who prioritize proximity to major tech companies and Stanford University. The 5-bedroom layout caters to large families or those needing home office spaces. With its prime location and high-end finishes, it's perfect for buyers seeking a long-term family home in one of the nation's top school districts. Investors looking for high-end rental properties could target tech company rentals, potentially commanding $12,000-$15,000 per month based on comparable luxury rentals in the area.

Not For

This property is not suitable for first-time homebuyers or those with household incomes below $700,000 due to the extreme monthly costs. It's impractical for investors seeking immediate positive cash flow, as current rental rates (even for luxury properties) are unlikely to cover the monthly ownership costs. The property may not suit those with respiratory sensitivities due to the high air quality risk score. Buyers looking for a low-maintenance or turnkey property should be cautious, as the home's age may require ongoing updates and care.
Demographics
Area Median Income

$133,686

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Risk Assessment

Climate Risks

airSEVERE

13 bad air quality days per year

heatMODERATE

7 extreme heat days per year

98th percentile: 90°F

floodMODERATE

FEMA Zone: X_SHADED

Insurance: Recommended

fireMODERATE

Insurance: Recommended

windMINIMAL

Insurance: Optional

Risk Analysis

The severe air quality risk (7/10) could lead to health issues and reduced outdoor enjoyment. The moderate flood risk (3/10) may necessitate flood insurance and potential future mitigation measures. The property's extreme appreciation since 2009 (133.5%) raises concerns about market sustainability and potential for a value correction. Given the age of the home, there's a high risk of major system failures (plumbing, electrical, HVAC) in the next 5-10 years, potentially costing $50,000-$100,000. The high monthly ownership costs ($16,464+) create significant financial risk if the owner's income situation changes. Future development or zoning changes in the area could impact property values, either positively or negatively.
Insurance
Annual Cost

$12,593

$1,049 per month

Financials

Monthly Costs

Price History

Property Taxes

$23,280
2024 Tax Assessment
1.5%from previous year
Assessed Value$1,895,725
Tax Rate1.23%

Location & Comparables

Subject Property
Comparable Sales
View on Zillow

Stats in the Area

Average Price

$4,699,333

34.3% above list price

Median Price

$4,670,000

Based on 6 recent sales

Price per Sq.Ft

$1,967

Comparable Properties

135 Heather Lane, Palo Alto, CA 94303
Price: $4,250,000
Sq.Ft: 2,462
Beds/Baths: 4/3
$/Sq.Ft:
$1,72629.6%
Sale Date: 10/29/2024
742 De Soto Drive, Palo Alto, CA 94303
Price: $4,301,000
Sq.Ft: 2,248
Beds/Baths: 4/3
$/Sq.Ft:
$1,91343.7%
Sale Date: 10/10/2024
30 Somerset Place, Palo Alto, CA 94301
Price: $4,670,000
Sq.Ft: 2,361
Beds/Baths: 4/3
$/Sq.Ft:
$1,97848.5%
Sale Date: 9/10/2024
1471 Arcadia Place, Palo Alto, CA 94303
Price: $4,875,000
Sq.Ft: 2,419
Beds/Baths: 4/3
$/Sq.Ft:
$2,01551.3%
Sale Date: 8/22/2024
739 Coastland Drive, Palo Alto, CA 94303
Price: $3,900,000
Sq.Ft: 2,463
Beds/Baths: 4/3
$/Sq.Ft:
$1,58318.9%
Sale Date: 8/15/2024
1989 Barbara Drive, Palo Alto, CA 94303
Price: $6,200,000
Sq.Ft: 2,400
Beds/Baths: 4/2
$/Sq.Ft:
$2,58394.0%
Sale Date: 10/24/2024

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