$3,500,000
16623 Marchmont Dr, Los Gatos 95032
AddressIntel AI Briefing
Tearing down this newly constructed 2025 home is financially impractical, leaving stealth density: primary + ADU + JADU as the optimal play to add value on the remaining lot. With high baseline home values in Los Gatos, adding luxury detached accessory units allows for high-yield rental additions without compromising the primary asset. The prohibitive entry price versus size-matched comps means any traditional flipping strategy is non-viable.
Property Permit History
| Date | Project Type | Status | Valuation | Contractor |
|---|---|---|---|---|
| 2024-12-18 | Building / Building / Residential / New Additions, Alterations and | Issued | $150,000 | OWNER/BUILDER |
Recent Neighborhood Remodeling (Los Gatos)
Parcel & Zoning Info
ADU Potential
Flag / irregular · Corner lot · ~68 ft frontage × 144 ft deep, a tucked-away rear unit is very private; access is typically via the pole driveway. A second street frontage lets an ADU take its own entrance and address.
Screening heuristic based on lot size, existing coverage, lot orientation, and hazard overlays. CA ADU law is ministerial statewide; verify max size, setbacks, and JADU owner-occupancy with the local planning dept.
Redevelopment Potential
Existing home already uses most of the allowable floor area, little expansion headroom. Zoning allows roughly 1,820 sqft of gross floor area on this lot.
Screening estimate comparing existing living area to the city's single-family floor-area limit. FAR rule curated from current municipal code. Source: Los Gatos Town Code 29.40.075 (as of 2026-06-30). Verify FAR, coverage, setbacks, and height with the local planning dept.
Hazard Snapshot
Flood Zone
Fire Severity
Liquefaction
Fault Zone
Not a substitute for a Natural Hazard Disclosure (NHD) report. Zones reflect available GIS data and may not cover all localities. Liquefaction and fault flags: modified from California Geological Survey, Web Service of Official Maps of Alquist-Priolo Earthquake Fault Zones and Web Service of Official Maps of Seismic Hazard Zones (2025).
Nearby Public Schools
Louise Van Meter Elementary
Los Gatos Union Elementary
Raymond J. Fisher Middle
Los Gatos Union Elementary
Los Gatos High
Los Gatos-Saratoga Union High
School boundaries are subject to change. Nearest school distance does not guarantee enrollment eligibility. Check with the local district. Data provided by CDE.
Proprietary Intelligence
Market Heat Index
71/100
Based on recent sales velocity and local demand in 95032.
Flippability Score
15/100
Measures neighborhood renovation density vs. recent permits on this property.
Bidding War Prob.
17%
Likelihood of multiple offers based on local list-to-sale ratios and DOM.
Proforma ROI Calculator
Back-of-the-napkin deal analysis across development strategies.
Zoning allows roughly 1,820 sqft here, less than the 2,294 sqft standing today, so a compliant rebuild would be smaller than the existing house. We don't quote a return on this one. Demolishing generally forfeits the existing non-conforming floor area, so treat it as a remodel or check the local code for what it lets you rebuild.
Median of 12 recent single-family sales in Los Gatos (95032): $1,252/sqft. Sized within 25% of the 2,300 sqft build, because smaller houses sell for more per foot and pricing a rebuild off them overstates resale.
Commission, transfer tax and closing. Deducted from resale before profit, so the ROI below is net of the exit rather than gross.
Carry on total capital for the project duration. At 0% the model is a cash purchase; 12 months at a typical construction-loan rate moves ROI by 6 to 10 points on a deal this size, so price it with your real rate.
Projected Profit
Warning: Project is mathematically underwater.
Recent Comparables (Los Gatos 95032)
Sized to the modelled 2,300 sqft build: sales within 25% of it. Smaller houses sell for more per foot, so pricing a rebuild off them overstates resale.