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384 Sq. Ft. Home Sells for Over Its $1.7 Million Asking Price — Here's Why

“People are not fully understanding the location of the property and its potential,” co-listing agent Faviola Perez tells PEOPLE of the Cupertino home

<p>Cyrus Yazdani</p> Exterior shot of the home

Cyrus Yazdani

Exterior shot of the home

A tiny home in Cupertino, Calif. that hit the market in early April caused a frenzy online due to it's shocking price tag.

The 384-square-foot house's asking price is $1.7 million.

While some online commenters couldn't quite believe the number, co-listing agent Faviola Perez confirms to PEOPLE that it has already found a buyer who is willing to pay “substantially” over asking.

The transaction is “scheduled to close” in early May, she confirms. Perez and Steve Bonafede of the Bonafede Team under Compass Real Estate currently hold the listing.

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There is an explanation for the seemingly disproportionate price: While the house boasts just one bedroom and one bathroom, it's set on a very large 7,840-square-foot lot in a desirable cul-de-sac in Silicon Valley.

Related: 6-Foot-Wide 'Skinny Home' Hits the Market for Under $600K in Washington, D.C.: Look Inside (Exclusive)

<p>Cyrus Yazdani</p> Bedroom area inside the home

Cyrus Yazdani

Bedroom area inside the home

“I think people are getting caught up on the fact that it’s a huge price tag for such a small home, but in reality it’s the potential for the lot and what that can offer in a neighborhood surrounded by $5 million homes," Perez tells PEOPLE.

She adds that “the initial shock factor” stems from seeing the “square footage of the home coupled with the price,” however the opportunity that comes with living “in the heart of Cupertino” needs to be taken into consideration, she says.

<p>Cyrus Yazdani</p> Surrounding lot on the property

Cyrus Yazdani

Surrounding lot on the property

“People are not fully understanding the location of the property and its potential,” she emphasizes.

Related: Chris Pratt and Katherine Schwarzenegger Face Backlash for Demolishing Historic L.A. Home

<p>Cyrus Yazdani</p> The property is surrounded by greenery

Cyrus Yazdani

The property is surrounded by greenery

While the existing structure may not be around for long after its sold, it does feature some nice amenities any homeowner would want in a living space. Inside the home, the bedroom area is equipped with sliding glass doors that lead out to a patio, perfect for outdoor dining.

The bedroom leads directly into the kitchen with enough space for a breakfast nook, mini-fridge and sink. The bathroom includes a stall shower and the same sleek hardwood floors as the rest of the home.

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<p>Cyrus Yazdani</p> The bedroom, bathroom and kitchen area

Cyrus Yazdani

The bedroom, bathroom and kitchen area

Looking outside, the sprawling lot is surrounded by abundant greenery that creates privacy from nearby homes.

Though the property could be a good fit for homeowners looking to live a “minimalist lifestyle,” the listing notes the lot can be used to construct a “dream home” or expand on the existing structure. 

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Read the original article on People.