House Sells for $1 in Detroit

DETROIT -- One dollar can get you a large soda at McDonald's, a used VHS movie at 7-Eleven or a house in Detroit.

The fact that a home on the city's east side was listed for $1 recently shows how depressed the real estate market has become in one of America's poorest big cities. And it still took 19 days to find a buyer.

The home, at 8111 Traverse St., a few blocks from Detroit City Airport, was the nicest house on the block when it sold for $65,000 in November 2006, said neighbor Carl Upshaw. But the home was foreclosed last summer, and it wasn't long until "the vultures closed in," he said. "The siding was the first to go. Then they took the fence. Then they broke in and took everything else."

So desperate was the bank owner to unload the property that it agreed to pay $2,500 in sales commission and another $1,000 bonus for closing the $1 sale; the bank also will pay $500 of the buyer's closing costs. Throw in back taxes and a water bill, and unloading the house will cost the bank about $10,000.

MP: There are currently 182 properties listed in Detroit for less than $1,000, including several more for sale at a list price of $1, and 7 houses for $100, 3 for $200, etc.