This is probably very surprising to most people that know me...but if you have been privy to my thoughts process for the last 2-4 years and especially the last 6 months to a year...it might not be all the surprising.
The Details
Detroit holds a real estate auction every September and October. The first round is in September. You can bid on properties and the minimum bid for the property is the total of their back taxes for the past three years...give or take. Essentially these homes are beyond foreclosure and have sat empty for years. They have already gone through the banks process and now the county is just trying to get some money from them and hopefully get people living in them. They might have squatters...they might not. And they are in varying degrees of condition. Some look great...some look terrible...If they don't get bought in the first round, they go to the second round starting in October where the minimum bid is $500. This is where people get the real deals.
I have known about this auction since I moved to Detroit. I looked at properties last year but mostly because it was fun to look. I never had any intent to buy. Well this year, again the auction came up and I found out the house right next to the house I used to live in was on the auction block. Ever since I moved to Detroit, I would look at this home and kind of dream of owning it and fixing it up. It was all a dream...until suddenly it appeared in the auction. My dream could actually become a reality.
I talked to my dad and we drove down to check out the house. It was solid in terms of the fundamentals...but needed a ton of work. The house was stripped and all the appliances were gone. Additionally it needs a furnace and water heater. You can tell it's a real piece of work.
The Auction
I could be wrong on the numbers, but there are something like 20,000 homes in this auction. They are all assigned to parcels and auctioned off during three days. My specific house was in a parcel that was auctioned this past Monday. I had decided to bid no matter what in the first round. I felt like the house was worth it. If I waited longer it was just going to kill me. I sat in front of my computer all day watching my house on the auction website. Finally about 15 minutes before the auction was set to close someone else placed a bid. I would have to bid that day regardless if I wanted the house.
I was ready to place a counter bid and my internet completely went out. I frantically called my brother and he logged into the site for me and placed my proxy bid...which essentially is a bid that tells the system how high I am willing to go. The proxy bid was in place and I just watched the bids go back and forth. Finally the other person bidding against me stopped and the auction closed. I won. I was shocked because I thought the bidding on my house would go much higher. It's in a great neighborhood (at least I think it's great) and close to downtown.
The Outcome
So I own a house now...that needs a lot of work. Once you win the bid, you have 24 hours to pay for your bid in full. I went to the Wayne County Treasure's office on Tuesday. I handed over my check and it's mine. I still need to wait for the deed in the mail but otherwise we are good to go. There are some other hoops to jump like paying the 2013 taxes which weren't rolled into the minimum bid tax bill. We also have to transfer the property and work with DTE for electric and gas...and also figure out the water situation. Now my contractor (my dad :) and I are going to start getting it ready to live in. There is a ton of work to do to make that happen but one step at a time and we will get there.
The House
I have a link to pictures below...just prepare yourself. It is sometimes great and sometimes bad. I am really excited about the whole process of working on the house. It has been a dream of mine for a long time to fix up a dumpy old house. I am eager to learn about electrical and plumbing along with everything else that comes with owning a house.
Don't worry...I will send out a call for help in the coming months. I would love help clearing out the house and tearing out all the walls in the basement and cleaning it up. We aren't ready to do that yet...but soon. I am pumped.
Check out the photos:
Just click the link to check them out: House Photos
