Question about Land Bank and Land in Detroit

**Chicago48** · December-26-17, 08:54 AM

Hi all,
Do you have experience buying vacant land in Detroit? I see several lots that I want to buy for $100 ea. and wonder if there are additional costs and fees on top of the $100? Thanks.

**gnome** · December-26-17, 09:30 AM

The $100 lots are usually restricted to the neighbor next door.

Any property offered for sale by the Land Bank may have additional liens or claims placed on the property. The liens could be outstanding taxes, water bills, mechanic liens ... that is why title search and insurance firms exist.

I have never bought a Land Bank property so I could be way wrong. Definitely 2nd or 3rd hand source.
information came from the Land Bank website

**ndavies** · December-26-17, 09:39 AM

From my experience with the landbank, You can only buy lots from the land bank for $100, if you own an adjacent lot. If you want to buy a lot off the land bank you will to pay more, and must have a redevelopment plan.

I'm trying to buy a lot from them to build a house. It costs way more than $100. It's also taking forever.

**ndavies** · December-26-17, 09:52 AM

You won't have tax or water liens on landbank lots. They are resolved during the foreclosure process.

**gnome** · December-26-17, 10:06 AM

Originally Posted by Chicago48

Hi all,
Do you have experience buying vacant land in Detroit? I see several lots that I want to buy for $100 ea. and wonder if there are additional costs and fees on top of the $100? Thanks.

I hope you don't mind but I am going to make a couple of assumptions. One, you are from Chicago. Two, you don't live here. Three, Urban Praire sounds all pioneery and cool in a hairy legged and macremae kind of way.

Let's say you find a lot for $100 with no liens or encumbrances; that house is going to be near other $100 lots and maybe a smattering of existing buildings. Some are burned and open to trespass, some homes are occupied.

You get your lot now you are going to build on that lot. You decide that to be a socially aware individual you are going to build a small house. A 500 sq ft house. Nice and tidy.

It's going to cost you at least 20 k even if you live in a tent while building because if you don't your lumber is going to grow legs.

If you plan of having a basement, try not to leave it alone because someone is going to fill it with tires or old refrigerators.

But you a smarter and luckier than everyone else. You pinch every penny and your pals help ... you build your new 500 sq ft energy efficient, wholistic, up-cycled Cabin/home for $17k.

You now own the nicest home in the neighborhood, or pretty close to being one of the nicest. You deserve all the great press you get from your alumni magazine and from the Hair Shirt Quarterly, because your hard work will be rewarded by living in a area surrounded by empty lots and burned homes.

This story has been told over and over again. Even Habit for Humanity has severely cut back their programs because of the exact issues outlined above.

**gnome** · December-26-17, 10:09 AM

Originally Posted by ndavies

You won't have tax or water liens on landbank lots. They are resolved during the foreclosure process.

Thank you for setting me straight.

**ABetterDetroit** · December-26-17, 10:35 AM

Originally Posted by Chicago48

Hi all,
Do you have experience buying vacant land in Detroit? I see several lots that I want to buy for $100 ea. and wonder if there are additional costs and fees on top of the $100? Thanks.

Chicago you have asked how and expressed interest in buying land in Detroit for several years now.

Instead of holding on to the something for nothing dream try this:

https://www.realtor.com/realestatean...t_MI/type-land

**Dumpling** · December-26-17, 04:03 PM

I have been assisting with tracking boarded and unboarded houses
near where I live. If one of your $100 lots is adjacent to an unboarded
house the citizens nearby will appreciate it if you buy that house.
The appreciation will be greater if it had been burned down and the
brush has grown tall around it AND you tear the house down
and tend to the landscaping.

There will still be appreciation if you buy a boarded house in reasonable
shape, fix it up and have someone living in it while you build your dream
schloss next door.

In my immediate area much nicer houses are built in Dearborn Heights and in Dearborn. Mortgages are readily obtainable in those communities so sale prices are higher. Someone did build a cookie cutter house
on my street and it did sell for something like $25,000 after being
on the market for a long time.

There are two or three houses on my block formally for sale; one with
a for sale in the window; one that someone was trying to flip that has
a renter - their ask price was about $30,000 with no takers; there is
also a house that was grandma's [[who passed last December) that is
being kept perhaps for sentimental reasons but $25,000 will likely
put that house in your hands; there is a Land Bank house that Mo
who was killed in the Flag Day drive by shooting was beginning to
fix.
We will appreciate whatever nice house you might like to build also.

You know this advice if you read everything in this forum: get to
know your neighbors. Your neighbors will help watch your house.
That does not mean that squatters, thieves or firebugs will never
happen. It does mean that you should get a phone call immediately
when they detect a problem. Of course a security system is a good
idea as well.

**Dumpling** · December-26-17, 04:24 PM

Two more points.

I've heard from enough neighbors in the area to be fairly confident that wherever your $100 vacant lot is, if it is near as many as four vacant houses, there should be at least one neighbor that would love to fix up
at least one of the vacant houses, they just don't have enough cash for that. It is a blue collar area. Few have college degrees but many would do most of the work themselves.

Second point. I have a mortgage and a car. The homeowners insurance
rate for 2018 from my current insurance company is $2000. Likewise
the rate for 2018 for the car is $2000 for basic no-fault for a car that
right now might be worth $500.

The economics are a little strange

**Chicago48** · December-26-17, 07:47 PM

Originally Posted by gnome

I hope you don't mind but I am going to make a couple of assumptions. One, you are from Chicago. Two, you don't live here. Three, Urban Praire sounds all pioneery and cool in a hairy legged and macremae kind of way.

Let's say you find a lot for $100 with no liens or encumbrances; that house is going to be near other $100 lots and maybe a smattering of existing buildings. Some are burned and open to trespass, some homes are occupied.

You get your lot now you are going to build on that lot. You decide that to be a socially aware individual you are going to build a small house. A 500 sq ft house. Nice and tidy.

It's going to cost you at least 20 k even if you live in a tent while building because if you don't your lumber is going to grow legs.

If you plan of having a basement, try not to leave it alone because someone is going to fill it with tires or old refrigerators.

But you a smarter and luckier than everyone else. You pinch every penny and your pals help ... you build your new 500 sq ft energy efficient, wholistic, up-cycled Cabin/home for $17k.

You now own the nicest home in the neighborhood, or pretty close to being one of the nicest. You deserve all the great press you get from your alumni magazine and from the Hair Shirt Quarterly, because your hard work will be rewarded by living in a area surrounded by empty lots and burned homes.

This story has been told over and over again. Even Habit for Humanity has severely cut back their programs because of the exact issues outlined above.

Thank you.
1- I live in Chicago, but family lives in Detroit.
2- Brother lives on a devastated east side block with no homes, all land. His is the only solid one standing.
3 - My goal is to buy the lots and deed them over to a non-profit like Humanity, but after you wrote about it, maybe it's not going to be that easy?
4 - Thinking about my bro living on the block by himself [[and ailing) that maybe having houses built and neighbors would help him and the area.
5- Bro was asked to buy a lot, but declined.

**Dumpling** · December-26-17, 09:43 PM

That's sweet of you to be concerned about your brother. Hope things
go well for both of you.

**ABetterDetroit** · December-26-17, 11:22 PM

Originally Posted by Chicago48

Thank you.
1- I live in Chicago, but family lives in Detroit.
2- Brother lives on a devastated east side block with no homes, all land. His is the only solid one standing.
3 - My goal is to buy the lots and deed them over to a non-profit like Humanity, but after you wrote about it, maybe it's not going to be that easy?
4 - Thinking about my bro living on the block by himself [[and ailing) that maybe having houses built and neighbors would help him and the area.
5- Bro was asked to buy a lot, but declined.

Having first hand experience with Habitat for Humanity they work with local government and their planning board on where to build and take many things into consideration but as always a cash donation has influence over these decisions.

I would make the call to them first and not the land bank. If your idea appeals to them they have the prior experience with the land bank people to make things happen on that end.

https://habitatdetroit.org/