In less than two months, the Detroit Land Bank’s online auction of vacant homes has generated more than $1 million in revenue.
As of June 26, the Land Bank has secured post-auction purchase commitments from high bidders in the amount of $1,015,560.
“The success of these auctions is another reminder of just how much demand there is for good homes in Detroit’s neighborhoods,” Mayor Duggan said. “Within a matter of months, these vacant houses will become homes that will be adding to the strength of our neighborhoods.”
The first BuildingDetroit.org sale took place on May 5th drawing 88 bids and a high bid of $34,100. Since then, the Land Bank has expanded the auction, selling two homes a day, with new listings added to the site almost daily.
So far, nearly 70 auctioned properties have sold for as little as $1,000 and as much as $97,000. Winning bidders are required to sign commitments stating they will fix up the home and have it occupied within six months of closing (nine months in historic neighborhoods).
Detroit City Council President Brenda Jones, a strong supporter of the auction program, said the range of homes being sold is a sign that people in all income levels are eager to live in Detroit.
“People are excited about the Land Bank auction and its success has created even more enthusiasm,” Jones said. “It’s a great way to bring new families into our city and re-energize our neighborhoods.”
Mayor Duggan set an initial goal of auctioning 400 homes by the end of this year. If the auction continues with two homes per day, seven days a week, more than 700 vacant homes would be sold next year.
Erica Ward Gerson, chairwoman of the Land Bank, said the number of homes auctioned on the website soon could increase to three per day.
“That would put us on a path to selling 1,000 homes every 12 months,” Gerson said. “That means just through this one auction we have the potential to add 1,000 or more residents to the city each year, which ties in perfectly with the mayor’s goal of increasing the city’s population for the first time in more than 50 years.”
The Land Bank auction is moving to neighborhoods throughout the city and already has sold homes in East English Village, Boston Edison, Osborn, Hubbard Farms, Cody Rouge, Warrendale, Southwest Detroit and others, with new listings being added almost daily. All current listing can be found on the auction website at BuildingDetroit.org.
