$1 Will Buy You a Home in Detroit
Detroit Home for Sale: $1
Desperation has hit Detroit. According to the Detroit News, several homes and a parcel were listed for sale for $1 in Detroit. One piece — at 8111 Traverse St, Detroit, MI (photo above) is close to a sale. And no, this is not a family member passing along a long-time property to another relative or some other insider deal, this is the ugly truth of how eager a bank is to unload a foreclosed property.
Not only is the bank owner losing any potential value in this property, but it will cost the bank an additional $10,000, “to pay $2,500 in sales commission and another $1,000 bonus for closing the $1 sale; the bank also will pay $500 of the buyer’s closing costs. Throw in back taxes and a water bill, and unloading the house will cost the bank about $10,000.”
In Zillow’s just released Q2 Real Estate Market Report, Detroit continues to slide with a decline of 12.9% year-over-year in Q2. The 5-year annualized is not quite so bad with a 3.2% decline. Detroit’s current Zillow Home Value Index is $124,126. The last time Detroit’s index was at these levels was Q4 of 1999.
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