Property investor bought Bay Area 'bargain' for $100,000 sight unseen - then got horrible surprise. Can you see what it is?

A unique property has come on the market in California, and at a cost of $400,000 it could be a bargain for the Bay Area.

Set in the city of Alameda across the bay from San Francisco, the location occupies a unique waterfront spot with plenty of room for development. 

The current owner bought it for $100,000, sight unseen, at an auction in March 2023, but even at four times the price, the place is still a bargain. 

Realtors are confident the location could one day be worth millions and that it will just take a buyer with vision to see it through.

A California property in the Bay Area is selling for a 'bargain' at $400,000 

Realtor April Jones is confident the location could one day be worth millions and that it will just take a buyer with vision to see it through

Of course, the catch is the land itself is completely underwater - something which made for a horrible surprise for the current buyer who bought it without realizing.

But that doesn't mean something livable and even luxurious can't be built on the site - even if it takes millions more to carry out the work, subject to various special approvals and permits.

The home would be set on an idyllic lagoon with and built on stilts to keep it well above the waterline. 

'One of the neighbors contacted me and said, "Oh, is this a joke?" And I said, "No it's not a joke." Someone bought it and they own it now,' the realtor for the property, April Jones told ABC7.

'This is unique to me. This is the first time I've come across something like this. I've had some unusual properties in my career, but this is a first,' Jones added.

The future home would be set on an idyllic lagoon with stunning waterfront views

The plot is bordered by a road bridge and the builders would have to consider the future rise in sea levels to avoid the place ending up underwater all over again

Even after the land is sold, it would still be quite a process before any building is constructed.

Various surveys would need to be conducted including checking the type of foundation on the lagoon floor. 

The plot is bordered by a road bridge and the builders would have to consider the future rise in sea levels to avoid the place ending up underwater all over again.

But Jones believes the place has potential and could one day be someone's ideal home.

'The lagoon area is beautiful. It's peaceful. It's very quiet. It's like having your own little oasis,' she said. 

The home is about one hours from Silicon Valley which could make is an attractive proposition to someone from the moneyed crowd 

One local, Chris Womack, believes that someone from the Silicon Valley crowd will have the money to snap it up.

'It's funny because that's probably the cheapest property in town,' Womack said.

'Alameda's got a good reputation and people will absolutely spend the money. You just got to find the right tech person and they'll get in here and be sure to make it the most expensive property on the block.'