A scorched plot of land in LA’s fire-ravaged Pacific Palisades neighborhood has sold for $1.18 million— nearly $200,000 over asking —despite being reduced to ashes by a devastating wildfire just weeks ago.
The sale will likely be the first of many, with at least a dozen charred properties currently on the market — some with price tags soaring up to nearly $4 million.
The unloaded lot, once home to a four-bedroom house destroyed in January’s Palisades Fire, was originally listed for $999,000.
But as interest flooded in, the price climbed, with a buyer snapping it up in just 34 days, according to Realtor.com.
Realtor Richard Schulman, who represented the seller, confirmed to Realtor.com that the deal was sealed by a “local investor.”
The original homeowner wasted no time listing the property after her home burned to the ground.
“For her, it’s an easy decision, and this made the most sense for her,” Schulman told Realtor.com, adding, “She was absolutely clear she was not going to rebuild. She’s staying nearby.”
Of the other burned-out plots, seven are listed above $2 million, with the highest currently asking $3.95 million.
One seller is pitching their 0.4 acre lot, listed at $3.25 million, as an opportunity to “be part of the rebuild.”
Meanwhile, only one listing — priced at $749,000 — has dipped below the million-dollar mark.
A similar exodus is unfolding in Altadena, another fire-ravaged area, where residents are dumping their properties rather than enduring the years-long headache of rebuilding.
Local real estate agent Brock Harris has seen it firsthand.
“At least one-third to half of the owners in Altadena are unwilling or unable to rebuild a house,” he revealed to the outlet.
Many, he said, are opting to cash out and move on, leaving the construction to developers who can get new homes up much faster.
“We’ve spoken to people with very small children,” Harris explained. “We spoke to people who are senior citizens. These are not people who are able to rebuild a home, or able to rent in the three to five years it takes to build a new home, so they’re mostly happy to leave it to someone else and to take the money and move on.”
But the mass sell-off is sparking debate over what these communities will look like in the future.
Celebrity real estate agent Josh Altman predicted up to 70% of Pacific Palisades residents before the fires will never return. His argument: The financial and emotional toll — coupled with the challenge of securing insurance in fire-prone areas — will be too much for most.
Real estate mogul Barbara Corcoran is far more bullish, however, saying that “100% [of Palisades residents] are coming back.”
The numbers paint a grim picture. The Palisades and Eaton fires, on opposite sides of Los Angeles, torched over 37,000 acres, killing 29 people and obliterating more than 16,240 homes and businesses.
A UCLA Anderson Forecast estimates total losses between $95 billion and $164 billion, with insured damages possibly hitting a staggering $75 billion.
But the report’s authors warn that insurance won’t cover everything, and many homeowners may be left on the hook for costs far beyond their coverage.
To help homeowners facing financial ruin, Gov. Gavin Newsom is pushing a $125 million mortgage relief package.
“As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds,” Newsom said, announcing that $100 million will go directly to homeowners at risk of losing their properties, while another $25 million will support FEMA disaster assistance programs.