Detroit Home On Sale For $1 STILL Unsold After a Year!
For this economically distressed city, it's not really a surprise, though.
According to leading real estate industry website Zillow.com, the 1915-built home on St. Claire St. was listed last February for $1.00! The original price of $900 was dropped dramatically, you could say.
The original listing of the home indicated it was suitable for two family units, with rare hardwood floors, basement and "much more." Selling a home for $1 seems like an absolute steal, but there are numerous factors that have kept people from buying it.
Unless you live in the area, this would be viewed as an investment property, but given the economic state of Detroit, who would want to move there? Oftentimes, such homes sit in the middle of largely abandoned neighborhoods, where's nobody around for several blocks.
These areas have also been taken over by roving gangs, and squatters, criminals, drug dealers and others often occupy the homes after they are vacant. Estate agent Albert Hakim says people also don't realize the numerous costs that often comes with such properties.
Many of the abandoned Detroit homes have been ransacked by theives, who steal pipes, especially if they're copper, sinks, bathtubs, electrical fixtures and anything else of value. Some of the home have water damage from leaky roofs, and some have even been set on fire and partially burned. Somebody who buys one would have thousands of dollars in fix-up costs.
And the price is not that shocking to area residents. The St. Claire St. property is just one of several dozen that have also been offered for 100 pennies.
Detroit has the highest property taxes of all major cities in the U.S., recently declared bankruptcy, and has seen it's population dwindle to about 700,000 people - down from 1.8 million in it's 1950's heydey. 25% of the people have left in the last decade.
Just prior to declaring bankruptcy, the city owed $18.5 billion just in long-term debt alone!