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Image 1 of / 13 Caption Close Image 2 of 13 The land is the true value. Photos: Estately/MLS The land is the true value. Photos: Estately/MLS Image 3 of 13 The house, again. Photos: Estately/MLS The house, again. Photos: Estately/MLS Image 4 of 13 It doesn't get much more exciting. Photos: Estately/MLS It doesn't get much more exciting. Photos: Estately/MLS Image 5 of 13 Image 6 of 13 10,000 square foot lot. Photos: Estately/MLS 10,000 square foot lot. Photos: Estately/MLS Image 7 of 13 That lot though....Photos: Estately/MLS That lot though....Photos: Estately/MLS Image 8 of 13 What would you do with the land? Photos: Estately/MLS What would you do with the land? Photos: Estately/MLS Image 9 of 13 Inside the house- a glimpse. Photos: Estately/MLS Inside the house- a glimpse. Photos: Estately/MLS Image 10 of 13 Image 11 of 13 Another, and the only other, inside shot. Photos: Estately/MLS Another, and the only other, inside shot. Photos: Estately/MLS Image 12 of 13 Location. Google maps. Location. Google maps. Image 13 of 13 This tear down is what $5.5M buys you in Palo Alto 1 / 13 Back to Gallery

We all know property in “the heart of the Silicon Valley” runs pricey, but occasionally we can still be shocked anew by just how pricey. Here’s a totally run-down home, circa 1923, listing for $5.498 million.

Yes, yes, in the land lies the real value. The original structure, a four bed, two bath of 2,008 square feet rests (decays?) upon 10,000 square-foot lot. That’s 10,000 square feet in prime Palo Alto, close to tech hubs, Stanford- in short, location, location, location. And face it, if you can drop $5.5 million for land alone, you can probably also afford to build anything you want. The MLS listing asks “Do you want a brand new contemporary home with all of your personal touches?” If you do, there is “unlimited potential.” But in case you see some charm in the bones of this abandoned 1920s home, you could “restore this architectural gem.” Or you could buy the land and hold on to it. In a year or two, maybe you could sell for it for twice what you paid. In Palo Alto real estate, anything seems possible.

Not the first eye-brow raising listing in this area: In November of last year a 180 square-foot shack listed for $2 million and in 2014, a complete tear-down (that prospective buyers couldn’t even walk around, only drive by, so dangerous and decrepit was it) listed for almost as much.

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert