What makes a property the worst house in the neighborhood?
In the case of 101 S. Grove in Ypsilanti, the list is pretty long. It includes the holes in the siding, the boarded up windows and the non-functioning kitchen.
But on the positive side, there’s the price: At $8,000, this house generated multiple offers - all over list price - in the first two days on the market.
Which means the cheapest house today in Washtenaw County won’t stay active for more than a week.
“Guys are clamoring to buy this property,” said listing agent Pat Mueller of the Charles Reinhart Co. in Ann Arbor.
The house is located east of downtown Ypsilanti on a street that Mueller says has more rentals than owner-occupied homes. Other active listings on the street range from $37,450 to $80,170.
This particular home is a bank-owned property, Mueller said, and "this house really needs quite a bit of work."
According to county records, National City took the house back in April - along with its outstanding mortgage of $90,929. It had been purchased in 2003 by Clark A. Miller for $43,000.
The 1,392-square-foot house once had a valid certificate of occupancy for renters, city officials say, but it was declared unfit for occupancy in July 2008.
Ypsilanti building inspector Frank Daniels said police had been called to the house and reported its condition to his department. He called the housekeeping "atrocious."
"When we went out, there was very, very - extremely - bad housekeeping, and it had no smoke detectors," Daniels said.
The smoke detectors were added, and the city pulled the condemnation order. However, the owner lost the house before additional repairs could be made and the certificate of occupancy restored.
And so it sat throughout the foreclosure process.
The average home buyer would be challenged to find some curb appeal today.
But there are some "diamond in the rough" qualities to the circa-1870s house. Like the quarter-acre yard with mature trees. The large garage, which also needs repairs. And the lack of either overt structural issues, like a caved-in ceiling or ripped-out plumbing.
As Daniels said, "I'm amazed that it's that cheap."
The neighbors may be as surprised as Daniels to see the price. But, Mueller said, selling to an investor means that this property will go through quick upgrades to restore value, which will end up serving the neighborhood well, too.
Cheap is driving local buyer demand, Mueller said. In the case of a property in the condition of 101 S. Grove, the low price needs to generate a cash offer, since no lender is likely to finance it.
"People are really excited about low-priced listings," Mueller said.
Hence the three immediate offers and promise of two more within 48 hours of the listing last week.
And that means that the pricing strategy and the "worst house in the neighborhood" line in marketing materials did the job to find a buyer.
"You can buy an $8,000 house on your credit card," Mueller said. "It's cheaper than a car, but you can live in it."
Paula Gardner is the business director for AnnArbor.com. Reach her at paulag@mbusinessreview.com.
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