For Sale: $2.5M shack in San Francisco

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It's no secret San Francisco is among the most expensive places to buy a home, but one multi-million dollar, uninhabitable shack in the city's Potrero Hill neighborhood is getting a lot of attention.

It's set back from the street with near collapsing wooden stairs that lead to the dilapidated four bedroom, four bathroom shack. 

The listing price? $2.5 million. 

"It's crumbling to dust. You cannot live there," said Marybeth LaMotte, marketing director for Coldwell Bank listing agent Anne Laury. And the stairs, LaMotte said, "You'd go right through it. It's very dangerous."

The home located at 863 Carolina St. went on the market on May 6th. After only eight days, LaMotte said they've seen a lot of interest. "There are 22 disclosure packages out. That's a lot," she said. 

A big reason for the high interest, is that the property is being sold with pre-approved plans and a demolition permit, according to LaMotte.

The listing boasts, "A rarely approved entitlement to demolish an existing shack and build one level above the neighboring structures." 

The online photos listed by the broker don't include images of the current building that's standing on the property but rather computer generated renderings of what the home would look like. 

The remodeled version of the home promises to offer 360 degree views of the cityscape, which includes a view of the bay.

While the $2.5 million price-tag may seem high for an unlivable shack, LaMotte said it represents the reality of the market in San Francisco.

LaMotte added that a home only two blocks away is being sold for $3.6 million, noting that while that house is in live-in condition, it doesn't have the potential this property does with its sweeping views of the water.

The marketing director said potential buyers looking for a home in San Francisco can expect this upward trend in home prices to continue.

"I watch the market," she said. "From what I've seen, the trend keeps going up. It feels like it's not going down, it's just not."