US homes sell for $100

The current state of the US Property market is so dire that buyers are now scooping up homes for next to thing according to a CNN website.

In Detroit and Cleveland, according to a report, banks are unloading rundown homes at prices as low as US$500 (A$750) – and even lower. In Detroit, Realtor.com listed a three-bedroom, one-bathroom home of about 986 sq ft for only US$100 (A$150).

 

Stated in the report “With prices this low, lenders aren’t looking to make any money on the deals.” 

“They just want to get the houses off their books, so they don’t have to bear the cost of maintaining them and paying property taxes. In fact, the $500, $1,000 or $3,000 that a buyer forks out often goes to the real estate brokers as commission. Further, the lenders have to kick in extra cash to make it worth a realtor’s while to even take the listings.” 

Most of these homes are small fixer-uppers with wiring, plumbing and heating systems that have to be replaced. “Often buyers are legally required to ‘rehab’ these homes to bring them up to code. In Detroit, buyers are required to sign Affidavits of Compliance Responsibility, which obligates them to make repairs outlined in an inspection report. Only after that can a certificate of occupancy be issued, which makes the house legal to live in.”

The report stated that even after factoring these costs in, they’re still bargains.

Source: Your Mortgage - US homes sell for $100