In the Metro Detroit area, I get a lot of calls from investors who hear "Buy Homes for $1 in Detroit". I have even seen items on the Internet with similar promises. The other day I had someone call me after hearing (or reading) something to this affect and wanted to buy a home cheap that already has a tenant; bringing about $800 monthly rent and one that did not need a lot of repairs. It was all I could do to keep from saying - You Have Got To Be Kidding! (And maybe they were but they sounded downright serious). There may be homes in Downtown Detroit that go for a dollar but buyers must know that it is probably condemned and needs a lot of work - after all. . . a dollar is a dollar. . .
While I find more homes in good repair that are foreclosures or HUD homes, I think all Realtors have a story of some surprises they have seen in the course of the past year. I have seen furnaces gone, pipes cut in basements for no reason but to purposely do damage; I have seen a nice home (outside and inside) until we came to the basement and it was full of frozen water half way up the stairs; I have even seen a breaker/fuse panel removed. I always have my camera and flip video with me and have started taking pictures of a few favorites.
My clients were looking to buy a HUD Home and this was is in a nice area of Wayne County. They drove by and it was very promising on the outside. From the windows, the damage was not obvious. However, for the right price they were very interested in doing the work (below) to fix it up - HUD thinks it is worth about $10,000 more than what my buyers feel is reasonable. We are watching this one.
The next one is located in Oakland County and I showed it to a first time buyer. They loved the neighborhood, the size and dimensions described in the multiple listing service - and the outside. Good so far. . .
When we first walked in, the living room was full of trash - old pictures of the previous tenants, clothing etc. No problem as it had nice hardwood floors (needing refinishing) and good floor plan. Then we turned the corner. . . This one should have been somewhat closer to the dollar side of the equation in pricing. The upstairs bath had been leaking for some time and the blown in insulation was dripping down as if it was mud or cement. This one was a pass.
So, in the Metro Detroit areas of Oakland and Wayne Counties, there are lots of foreclosed homes and HUD homes -- many of which are probably investor delights. We are also seeing a large amount of short sales which are usually in good condition. However, I have not yet seen any for a dollar. Anyone who calls I just say - it's a good time to buy, there are many bargains, but remember, you get what you pay for.
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Metro Detroit Realtor selling Real Estate in Southeastern Michigan. TishHouse sells Houses - selling Oakland County Real Estate with RE/MAX Showcase Homes in Birmingham, Michigan. Helping People in a challenging market by specializing in Short Sales. See what my clients have to say about my extraordinary customer service. Follow me on Twitter.
