The Seller’s Ultimate Guide to Marquez Knolls Lots: Maximizing Hillside & View Value
Pali Living – Your Pacific Palisades Lot Specialists
Marquez Knolls is defined by its sweeping ocean views and generously sized hillside lots. For sellers, the current post-fire market is a window of opportunity: while land prices saw an initial drop, the fundamental value drivers (views and entitlements) remain strong, attracting developers eager to acquire lots at a lower basis than before the fire.
1. Current Market Landscape: Pricing the View Premium
The key to pricing a Marquez Knolls lot is accurately valuing the view against the necessary development costs.
- Pricing Correction: Land prices in fire-affected areas dropped 30–50% post-fire. A typical 6,500 sq ft lot, which sold for $3.2M pre-fire, is now closing around $1.6M–$1.8M.
- Price Per Square Foot (Land): Current sales in the Alphabet Streets (often used as a benchmark) average $250–$300 per square foot. Your unobstructed ocean views should command the higher end of this range.
- The Buyer’s Opportunity: Developers are aggressively buying because the current pricing offers them a significantly lower acquisition basis, guaranteeing better margins when they sell the finished custom home.
| Market Trend | Post-Fire Data (2025) | Seller Takeaway |
| Current Lot Price/SF | $250–$300 | Price competitively to benefit from high buyer momentum and tightening inventory. |
| High End Comp | Pre-fire land values hit $450–$500/SF. | Emphasize your lot’s ability to support a multi-million dollar finished home. |
| Buyer Activity | Land sales have surpassed active inventory (221 sold vs. 188 active listings). | The market is showing resilience; the window for deeply discounted offers is closing. |
Actionable Step: Get a granular valuation based on current comps, specifically focused on view-oriented hillside parcels. Get a Free Lot Valuation.
2. Maximizing Value: Hillside Entitlements (BHO & Size Bonus)
Your lot’s value is locked in its development potential, which is defined by the Baseline Hillside Ordinance (BHO) and post-fire permits.
2.1. Baseline Hillside Ordinance (BHO) Advantage
Since Marquez Knolls is a designated Hillside Area, all new construction must comply with the BHO, which regulates size and grading.
- Established Footprint: Market the fact that your lot has an established building history. The BHO’s purpose is to limit the size and mass of new homes. Your pre-existing footprint offers a clear, valuable starting point that mitigates a buyer’s risk.
- Basement Rules: Highlight that for hillside lots, the BHO allows basements to exceed 3 feet in height above grade for up to 60% of the exterior perimeter, offering significant design flexibility for larger homes.
- View Protection: Many Marquez Knolls tracts have CC&Rs (Covenants, Conditions, and Restrictions) that protect views. This is a massive selling point that assures the buyer their new view will be protected from future development.
2.2. Post-Fire Rebuild Bonus
- 110% Size Bonus: Your lot qualifies for the post-fire rebuild allowance, enabling a buyer to replace the structure without exceeding 110% of the original home’s size. This pre-approved size bonus is a critical asset when marketing to developers.
- Fast-Track Permitting: The ability to qualify for the streamlined “fast-tracking” permit process for rebuilding up to 110% of the previous size is a premium feature for buyers focused on speed and time-to-market.
Official Resource: To understand how the BHO and BMO impact new construction size and bulk, review the LA City BMO/BHO Code Amendment Q&A.
3. The Sell vs. Rebuild Decision
While rebuilding offers the greatest potential equity gain, selling now avoids the extensive time, cost, and risk of a multi-year custom build (average timeline is 18–24 months).
- Prop 19 Transfer: If you are over 55 or a fire victim, leverage the Proposition 19 tax transfer to reduce your tax burden on a replacement property anywhere in the state. This is a powerful financial incentive to sell now.
- Warning: Given the high buyer demand for entitled land, opportunistic investors are targeting sellers with low, off-market offers. Listing your property ensures you benefit from competitive bidding and secure the true value of your rebuild-ready lot.
Contact David & Anna Solomon
The Marquez Knolls market requires an agent who understands the nuance of BHO compliance, view valuations, and the fire-rebuild entitlements.
To list your property and maximize the value of your rebuild entitlements, contact David & Anna Solomon for a confidential consultation.