Score
0Palo Alto, CA
887 Warren Way
3.5M
5 beds
3 baths
2,627 sqft
5 bd • 3 ba • 2,627 sf
This analysis was generated 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
$1,332
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
Property History
Price History
Ownership Timeline
$1,498,000Cash Purchase
Aug 13, 2009Mehran Reihani, Shahnaz PeymanHui Ling Zhou, Sheng Liu
Grant Deed
Standard Sale (Purchase/Resales)
$0Cash Purchase
Aug 8, 2006Mehran Reihani, Shahnaz PeymanMehran Reihani, Shahnaz Peyman
Intrafamily Transfer
Non-Arm's Length Transactions
$0Financed
Apr 21, 2004Mehran Reihani, Shahnaz PeymanMehran Reihani, Shahnaz Peyman
Intrafamily Transfer
Non-Arm's Length Transactions
$0Cash Purchase
Apr 7, 2003Mehran Reihani, Shahnaz Peyman ReihaniMehran Reihani, Shahnaz Peyman
Intrafamily Transfer
Non-Arm's Length Transactions
$0Financed
May 16, 2001Mehran Reihani, Shahnaz PeymanMehran Reihani, Shahnaz Peyman Reihani
Intrafamily Transfer
Non-Arm's Length Transactions
$0Cash Purchase
Jul 30, 1998Reihani MehranMehran Reihani, Shahnaz Peyman
Intrafamily Transfer
Non-Arm's Length Transactions
Property Taxes
$23,280
2024 Tax Assessment
1.5%from previous year
Assessed Value$1,895,725
Tax Rate1.23%
Sunlight Analysis
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Sunlight Analysis
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Schools
Nearby school quality by education level
Middle
8.0/10
ExcellentHigh
9.0/10
ExcellentFinancials
Monthly Costs
Market Rent (5 bed)
Get a detailed estimate on Zillow$2,156
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Location & Comparables
Subject Property
Comparable Sales
Subject Property
Price
$3,498,000
Price/sqft
$1,332
Layout
5 bd•3 ba
Days on market
4 daysat time of analysis
Stats in the Area
Based on 6 comparable properties nearby
Average Price
$4,699,333
25.6%
Your price is 25.6% below average
Median Price
$4,670,000
25.1%
Based on 6 recent sales
Price per Sq.Ft
$1,967
32.3%
Your price is 32.3% below average $/sqft
Comparable Properties
| Address | Price | Sq.Ft | Beds | Baths | $/Sq.Ft | Sale Date |
|---|---|---|---|---|---|---|
| 135 Heather Lane, Palo Alto, CA 94303 | $4,250,000 | 2,462 | 4 | 3 | $1,72629.6% | 10/29/2024 |
| 742 De Soto Drive, Palo Alto, CA 94303 | $4,301,000 | 2,248 | 4 | 3 | $1,91343.7% | 10/10/2024 |
| 30 Somerset Place, Palo Alto, CA 94301 | $4,670,000 | 2,361 | 4 | 3 | $1,97848.5% | 9/10/2024 |
| 1471 Arcadia Place, Palo Alto, CA 94303 | $4,875,000 | 2,419 | 4 | 3 | $2,01551.3% | 8/22/2024 |
| 739 Coastland Drive, Palo Alto, CA 94303 | $3,900,000 | 2,463 | 4 | 3 | $1,58318.9% | 8/15/2024 |
| 1989 Barbara Drive, Palo Alto, CA 94303 | $6,200,000 | 2,400 | 4 | 2 | $2,58394.0% | 10/24/2024 |
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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