House in San José with methamphetamine laboratory goes on the market for $1.5 million

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Rob Nesbitt and Amy Larson

8 hours ago

SAN JOSE, Calif. (KRON) – A San Jose home that was dismantled as a methamphetamine lab seven months ago is now for sale. 668 Potomac Court came on the market for over $1.5 million and is being sold as-is.

Surrounded by chain-link fences and warning signs reading “condemned,” the home is currently unsafe for occupancy. Keller Williams Reality website lists the house for $1,550,000 and says: “Great opportunity to own a large home. Great location near highway and highway. There is an inactive methamphetamine and meth lab at home.”

The owner of the home, 35 years old. Peter Karasev was arrested in March for storing explosive materials, weapons and narcotics inside. FBI agents said Karasev stored highly explosive chemicals to make bombs while he lived at 668 Potomac Court with his three young children and his wife.

Police found chemicals, drugs and firearms “within the reach of children. It was not a safe environment for children or anyone,” San Jose Police Department Deputy Chief Paul Joseph previously told reporters.

In addition to the “for sale” sign, the home also has warning signs posted by Santa Clara County officials. (KRON4 image)

When questioned by detectives, Karasev said he was interested in building model rockets, used methamphetamine and was concerned about the war in Ukraine, according to court documents. Investigators said Karasev built bombs that he used to blow up PG&E transformers in the city.

The listing description of the property says the home will be transferred to a new buyer in its current condition.

Real Estate 38 owner Zaid Hanna told KRON4 that although it is a seller’s market, “if they get the $1.5 million they are asking, it will be a home run. I would be very surprised if they achieved it.”

Hanna says bringing the house to a safe, livable state won’t be cheap. “Someone is going to have to come in and rip out the flooring, the sheet rock, the insulation…so it takes two to three hundred thousand dollars to get it back to where it belongs,” she explained.

Six bedrooms, four bathrooms and a 6,000-square-foot lot are some of the selling points. The house is also located in a residential neighborhood with a school nearby. But is the house worth $1.5 million, plus $300,000 in repairs?

“The answer is no,” Hanna said.

KRON4 contacted the real estate agent selling the property. The agent was not available for comment.

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