Foreclosure Home for a $1.00?

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August 13, 2008
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August 14, 2008

Foreclosure Home for a $1.00?

Detroit Foreclosure House for $1!

From an article in the Detroit News, this house in Detroit, Michigan was recently listed for $1.00. That’s right. One American greenback. It sold for full price! The buyer plans to pay cash.

Between sales commission and $1,000 bonus, buyer’s closing costs, back taxes and a past due water bill, the sale will cost the bank owner about $10,000.

The empty, foreclosed home is now a shell of its former self. As a vacant home, it was subject to the ravages of scrappers, thieves, looters, vagrants, and squatters. They stole everything of value, including the kitchen sink. The copper plumbing was ripped out. The furnace, water heater and light fixtures are gone. The garage has burned down. They even stole the boards used to close up the house and used them to board up another nearby abandoned house!

The buyer calls it an investment property and does not plan to live there.

While this is an extreme example, the cost of carrying foreclosed homes is putting incredible financial pressure on banks and institutional owners. Many are slashing prices just to get the homes off their books.

Fortunately, we do not have that same kind of problem in Bryan, College Station, or Texas as a whole. Sure, we have our foreclosed properties that still need to be sold. Some have had vandalism or theft. But the numbers of foreclosures in Texas have not approached the numbers seen elsewhere in the nation.

Foreclosure homes in Bryan and College Station tend to be priced comparable to a regular, owner-occupied resale home. Sometimes discounts are made for the condition of the property, and good deals can be found. However, I would not expect to find a home for a $1 in my local MLS.

Texas is still a strong real estate market, one of the strongest in the nation. Bryan and College Station are near the top in affordability and property values. According to the Real Estate Center at Texas A&M University, our average and median home prices have risen every year since 2002!

Whether you plan to live or just invest in the Bryan and College Station area, call Jason Johnston with Century 21 Beal at 979-571-3553 or email JasonJ@Century21BCS.com for a complete market report for the types of property that interest you.

5 Comments

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  2. Great articles & Nice a site

  3. Interesting thoughts on American foreclosure. We’re lucky it’s not that bad over here in the UK. Our shortage of houses supply has always kept things together a bit!

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