Buyers Paid about $30,000 for a Single Family Home
Detroit's plan to auction homes for as little as $1,000 each has generated great results, at least three homes were bought for more than $30,000. The Detroit Land Bank Authority accepted bids for $30,100, $34,100 and $42,100. Under the rules of the bidding, winning bidders must repaid (rehab) the home, after showing that they have the financial ability to do so and the necessary capability to complete the repairs. And the winner bidder must take occupancy within six months. Under the terms of the agreement, the occupant does not have to be the new owner.
Under the home sales process, which has been named "Building Detroit," a large number of homes have been offered for as little as $1,000. Potential buyers can view the homes for sale online. Buyers must be Michigan residents and cannot have a history of "delinquent taxes or code violations." "We had an open house on April 27th and more than 2,000 people showed up," said city councilman André Spivey, whose district includes East English Village, where most of the homes are located.
All bids start at $1,000. The first sale took place on Monday and drew 88 bids. The winning bid hit $34,100. Spivey said that was a pretty strong price. The three-bedroom, 1,400-square-foot home needs a new furnace and water heater, but was otherwise in good condition.
A second home sold on Tuesday for $30,100. It also needs a water heater and furnace -- and a new roof and gutters.
And on Wednesday, a three-bedroom, 1,200-square-foot cottage needing roof and window repairs went for $42,200.
The average home in the area is estimated by Zillow to be worth about $40,000.
Winning bidders in the auctions, which are run by the Detroit Land Bank Authority, must rehabilitate the houses and move someone into them within six months. Spivey said the sales will slow or reverse blight, remove targets for vandals and squatters, and send properties back onto the tax rolls of the bankrupt city. "Plus, I'm very excited to get some new neighbors," he said.
Detroit plans to auction 11 more properties in coming weeks. The city alone owns 16,000 vacant properties that were seized for unpaid taxes or other bills. Bidders must register online, and sales are restricted to Michigan residents and companies. They must not have any building code or blight violations or tax foreclosures on their records. Winning bidders have to come up with a 10% down payment within 72 hours and close and make a full payment within 60 days if the purchase price is less than $20,000, or within 90 days if it's more than $20,000.
If you are in the market for a new house and would like information on homes for sale, or are first time home buyer not working with a Realtor and would like to schedule a consultation with a qualified Oakland County and Macomb County Realtor, please complete the Lang Premier Properties contact form to have a real estate agent contact you.
Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Max Broock in Birmingham, Michigan. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.