The economy has gotten so bad that homes in Detroit are selling for as little as $1. Back in 2006, the house shown below sold for $65k. Currently it still stands on 8111 Traverse Street in Detroit, but with ransacked doors and a nice layer of boards over what were previously barricaded windows. It’s depressing how one can buy a doll house for at least 20 times the value of a real house!
Previously, it was put on the market for a little over $1000 after it foreclosed, yet no one showed any interest. As a result, the price was lowered to $1 to secure ANY buyer and unload the house. In the end, the bank paid approximately $10,000 to cover the $2,500 sales commission, $1,000 closing bonus, $500 buyer’s closing costs, back taxes and water bills incurred during the period it took to get rid of the house.
So you must be wondering why someone would sell a house for $1 dollar, when the lumber its made of probably totals to more than $1 dollar. Well, it is because the city is doing so poorly that nobody is able to pay the couple thousand dollars of taxes to actually own the property.