Wayne County bundled 6,350 properties together in their most recent round of tax auctions. Instead of the usual starting price of $500, these were grouped together. Probably about 2,000 of those are vacant lots, and another 3,000 or so are beyond help and will need to be demolished.
The $3,183,500 bid relieves the Detroit Land Bank of the estimated $24 million cost to demolish those homes, so Detroit officials have got to be happy about that. Rumors are that others may yet bid and drive the price up.
So the buyers get 1300 decent houses, 3000 that need torn down, and 2000 vacant lots. $24 million to demolish the bad ones should be figured into the bid. The vacant lots are not worth anything, really. $27 mil to 1300 decent houses works out to about 21000/house, unless they figure they can do the demolitions cheaper. Sounds like a win-win to me.
The auction ends in seven days.
Link:
http://www.detroitnews.com/story/news/local/wayne-county/2014/10/21/m-bid-placed-bundle-foreclosed-properties-detroit/17659389/
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