Gilbert teams up with Home Depot, renovating 65 neighborhood homes

**DetroiterOnTheWestCoast** · September-01-15, 12:10 PM

Originally Posted by Shai_Hulud

I didn't make it to view these houses but judging from the pictures it's a decent renovation with Home Depot finishes. All the mechanicals are updated so I imagine most people would be satisfied with owning one of these homes.

There are a few questionable choices such as covering the entire house in carpet when most of it had hardwood floors in a good condition and the removal of some leaded glass windows, but overall a nice job.

This is the before http://auctions.buildingdetroit.org/.../18509-Prairie

and this is the after http://auctions.buildingdetroit.org/...etails/2007468

Not sure if the other property was previously listed, so far, I'm not able to find it on the website.

If you are referring to the Monica Street house, its on the website. At least in the living and dining rooms, it has refinished hardwood.
http://auctions.buildingdetroit.org/...etails/2007334

**Shai_Hulud** · September-01-15, 12:20 PM

Originally Posted by DetroiterOnTheWestCoast

If you are referring to the Monica Street house, its on the website. At least in the living and dining rooms, it has refinished hardwood.
http://auctions.buildingdetroit.org/...etails/2007334

What I was trying to find out is if the Monica house had been listed previously and thus, had full before pictures like the Prairie house.

But I'm not going through 50 pages of previous listings again to find out.

**hybridy** · September-02-15, 11:42 AM

the rehabbed & ready home auctions begin today...http://auctions.buildingdetroit.org/RehabbedAndReady

**rex** · September-02-15, 12:24 PM

good news. I think they should earmark some money to clear out anything and everything abandoned and falling over between connor and alter on the far east side. Then i think the city should look into establishing a fair price for privately owned lots and force the sales by something like immanent domain and find a developer who is willing build from east to west some 250-350K homes. Have private security and allow/pay GPP to expand their patrol area to contain the new development. Would be good for GPP, would be good for Detroit. Would be good for people with some money that work downtown and want to live in the city and near the river

**rex** · September-02-15, 12:28 PM

occurs to me that some of that property is probably owned by speculators who look at the fact that its already almost cleared out and close to GP and would stand in the way of redevelopment by asking way too much for the land

**getmoore** · September-02-15, 05:48 PM

Originally Posted by hybridy

the rehabbed & ready home auctions begin today...http://auctions.buildingdetroit.org/RehabbedAndReady

Looks like it only got one bid.

**TTime** · September-02-15, 05:51 PM

Originally Posted by getmoore

Looks like it only got one bid.

http://www.freep.com/story/news/loca...-bid/71606282/

**emu steve** · September-02-15, 05:58 PM

Originally Posted by TTime

http://www.freep.com/story/news/loca...-bid/71606282/

It is hard to sell houses by auction on short notice.

I assume a potential buyer would need weeks to get pre-approved, make decisions, etc. etc.

That house, all nicely cleaned up and landscaped looks a 1,000% better. I bet the neighbors are very happy.

Even a few hundred dollars of sod did wonders for the curb appeal.

**rex** · September-02-15, 06:18 PM

isnt there some federal grant money that could go into this program? Its a wonderful idea. They're tearing down lots of houses which is necessary but restoring em and filling em with tax contributors is better for everybody. Even if they take a 10K loss on a sale here and there it costs thousands to tear down and dispose of these abandoned places and then they need to be mowed. An empty lot beats an abandoned house but where theres a will and a little bit of money there should be a way. Just think about how many houses we've lost that probably wouldnt have required 60K to restore. Maybe 15 - 30 for updates and a few repairs before the scrappers came in and removed all the plumbing and ripped up the kitchen. Before they became squats and or were left open to the elements.

**BankruptcyGuy** · September-02-15, 06:20 PM

This is just [[sample size = 1) but you may start to see part of the problem--it cost $60,000 to renovate a home worth $45,000. That didn't include past due taxes or purchase price of the dwelling, which would be costs in a normal transaction.

This is admirable work. Godspeed to them. But this is a large, steep hill to climb.

**ABetterDetroit** · September-02-15, 08:02 PM

Originally Posted by BankruptcyGuy

This is just [[sample size = 1) but you may start to see part of the problem--it cost $60,000 to renovate a home worth $45,000. That didn't include past due taxes or purchase price of the dwelling, which would be costs in a normal transaction.

This is admirable work. Godspeed to them. But this is a large, steep hill to climb.

Agreed, large and steep. But didn't the land bank end up with title because because the taxes were not paid in the first place? You can't stare at a ruin and say "how will we get the money owed to us?" forever, sooner or later you write off the loss and move on. If Gilbert and the Mayor both say people can not get mortgages because there are not enough comps, I believe them. This program is a way to start addressing the problem. Doing something is better than doing nothing, at the very least you learn what will not work. Besides its Gilberts dime and he should know more about the mortgage biz than any of us.

**BankruptcyGuy** · September-02-15, 08:11 PM

What that buyer will have to do to really get it added as a comp will be to sell it, sadly. Only then will the sale be considered an "arms-length" sale by appraisers.

I 100% agree that the city should be writing off losses and moving on. And yes, doing this is better than doing nothing, for sure.

**ABetterDetroit** · September-02-15, 08:31 PM

Originally Posted by BankruptcyGuy

What that buyer will have to do to really get it added as a comp will be to sell it, sadly. Only then will the sale be considered an "arms-length" sale by appraisers.

I 100% agree that the city should be writing off losses and moving on. And yes, doing this is better than doing nothing, for sure.

I assumed because the sale was a open auction that the sale price would be a legitimate comp as soon as it was closed and recorded. I could be wrong as this is not my area of expertise.

**archfan** · September-03-15, 01:56 AM

Originally Posted by BankruptcyGuy

This is just [[sample size = 1) but you may start to see part of the problem--it cost $60,000 to renovate a home worth $45,000. That didn't include past due taxes or purchase price of the dwelling, which would be costs in a normal transaction.

This is admirable work. Godspeed to them. But this is a large, steep hill to climb.

They also avoided $10K for demolishing the house down the road. It will be interesting to see the sale price for the other houses.

**Honky Tonk** · September-03-15, 03:59 AM

Originally Posted by archfan

They also avoided $10K for demolishing the house down the road. It will be interesting to see the sale price for the other houses.

It'll be more interesting to see who buys them, maintains them, and how viable this plan will be as far as "neighborhood restoration" goes.

**Cliffy** · September-03-15, 08:13 AM

I'm curious to see how long this thing lasts. Hopefully the owner pays taxes and doesn't lose their house.

**Shai_Hulud** · September-03-15, 08:40 AM

Originally Posted by Cliffy

I'm curious to see how long this thing lasts. Hopefully the owner pays taxes and doesn't lose their house.

At that price mortgage should be about $250, then I'd estimate another $250 for taxes and insurance. It should be manageable.

**emu steve** · September-03-15, 02:01 PM

Originally Posted by Shai_Hulud

At that price mortgage should be about $250, then I'd estimate another $250 for taxes and insurance. It should be manageable.

Yeah, a mortgage of say 40 - 50K at 4% isn't exactly onerous.

The home buyer should have a 'free ride' as far as expensive repairs or modernization for a number of years. [[like no remodeling of kitchen, baths, etc. etc.).

**jmarie** · September-03-15, 07:22 PM

The house auctioned today [[on Prairie) sold for $700 more than the starting bid. $56,600 was the winning bid. Two bidders, six total bids.
I think once more people know about it the auctions will be more successful. Regardless, it is a start.

http://auctions.buildingdetroit.org/...etails/2007468

**emu steve** · September-04-15, 08:36 AM

Originally Posted by jmarie

The house auctioned today [[on Prairie) sold for $700 more than the starting bid. $56,600 was the winning bid. Two bidders, six total bids.
I think once more people know about it the auctions will be more successful. Regardless, it is a start.

http://auctions.buildingdetroit.org/...etails/2007468

These houses are great deals esp. first time home buyers who don't want to buy a house and have to replace the roof in three years, replace the furnace in two years, remodel the kitchen and bath in five, etc. etc.

The secret to homeownership is not to get killed on remodeling or other big expenses which cost five figures [[e.g., 10 - 20K) leaving the owner 'house poor.'

Hopefully these owners are set for say five years with no big "Harry Homeowner" expenses, and if none, then their housing costs are no more than rent...

**313rd** · September-04-15, 09:15 AM

Anyone know if its possible that I could donate my house to the program. Only need about $5k-10K to make livable again.

**Gpwrangler** · September-04-15, 10:34 AM

Originally Posted by emu steve

These houses are great deals esp. first time home buyers who don't want to buy a house and have to replace the roof in three years, replace the furnace in two years, remodel the kitchen and bath in five, etc. etc.

The secret to homeownership is not to get killed on remodeling or other big expenses which cost five figures [[e.g., 10 - 20K) leaving the owner 'house poor.'

Hopefully these owners are set for say five years with no big "Harry Homeowner" expenses, and if none, then their housing costs are no more than rent...

Hopefully the new value is supported with other comps. Nothing would be worse than paying cash for a $45,000 home and realizing every other house on the block is worth maybe $7500.

**emu steve** · September-05-15, 08:18 AM

Originally Posted by Gpwrangler

Hopefully the new value is supported with other comps. Nothing would be worse than paying cash for a $45,000 home and realizing every other house on the block is worth maybe $7500.

I understand your point but don't most of the other houses on Monica have fair valuations?

I assume these neighborhoods were chosen because the neighborhoods are stable, values are decent, the housing stock is good [['good bones'), etc.

I assume that Gilbert, et al looked at the value of homes in these neighborhoods and asked:

"What would this house sell for if it was in tip top shape?" "How much will it cost to get it in tip top shape?"

The houses are brick and look to be in pretty good shape.

The type of houses which could really benefit by new this and that.

**jmarie** · September-05-15, 09:38 AM

Originally Posted by emu steve

I understand your point but don't most of the other houses on Monica have fair valuations?

I assume these neighborhoods were chosen because the neighborhoods are stable, values are decent, the housing stock is good [['good bones'), etc.

Exactly. They are targeting very specific neighborhoods [[Bagley, Crary-St. Mary's, College Park and Outer Drive) because they are more stable.

The whole point of the program is to boost home values by boosting the comps.

**jmarie** · September-27-15, 08:04 PM

They have two houses for auction right now, both in Crary-St. Mary's. They changed the format and allowed bidding to go on for about a week. Only 20 hours left and neither house has a bid. I was told that Gilbert even sent out an email to all of his employees [[or at least all of the Detroit employees) basically giving a giant sales pitch. And there still aren't any bids.
I do think lack of advertising is a problem.