If there are variances granted and it is a coastal area needing CCC approval too, a single family home approval, plans and construction permit could be worth $300,000. There are thousands in city fees to get this far.
Of course usually it is just some blueprints and city staff inital approval for these dumb listings. I have never seen one sell. It might be like a renovation that the seller has an emotional need to recoup the cost of.
