The $1.75 eBay house: Foreclosure bargains aplenty
Filed under: Bargains, Home, Simplification, Wealth, Bankruptcy
For months, I've been hearing rumors and tales about incredibly cheap housing in high-foreclosure markets. In Detroit, for example, a house that cost $65,000 in 2006 recently sold for $1, and it's apparently fairly common to find houses in the $300 range. As in the case of the $1.75 house that Joanne Smith bought in Saginaw, Michigan, many of these super-cheap foreclosures come with a tax bill that is in arrears, but even with the $850 in back taxes and cleanup costs that she will end up having to pay, she's gotten an incredible deal.
Searching through various foreclosure listings online, I decided to check out some of the places where I've lived. In Roanoke, Virginia, where my wife and I briefly contemplated buying a home, the cheapest place I found was running about $1,000. Meanwhile, in Blacksburg, where my wife and I worked, even HUD homes used to run in the $140,000 range. Right now, "motivated sellers" and banks are dropping properties at fire-sale prices.
It's interesting to think about how cities compete for tourists. Apart from spending billions of dollars on advertising, fighting to host World's Fairs and the Olympics, and desperately organizing major events, almost every aspect of a city's infrastructure could be seen as part of a bid for the tourist buck. Police? Handy for keeping the tourists safe. Public transportation? Offers a cheap way for the tourists to get around. Sports teams? Keeps the tourists happy while they're here and gives them handy souvenirs to take home!