Here are the priciest property sales from Detroit's Own-it-Now auctions this year

The Detroit Land Bank Authority has for years been auctioning off long dilapidated buildings for next to nothing in an effort to revamp the city’s housing stock and revitalize communities. 

Own-It-Now, one of the land bank’s home-buying options, offers up “as is” properties at auction, with prices starting as low as $1,000 — 24 hours a day, seven days a week. In 2024, even the most expensive homes haven’t cracked $65,000 at auction.

The programs are an unparalleled path to home ownership for some and a pet project for others. But the low priced homes can come with a high price: in one auction category, many properties need extensive rehabilitation and may carry back taxes that need to be paid off. When the auction prices start to climb or construction costs balloon, the value of home ownership can be swallowed by the threat of debt. 

“It's a really hard balance to strike … between selling to anyone who has the $1,000 or wins that Own-It-Now closed bid auction, and informing people carefully and fully about what they're getting into,” said Dr. Margaret Dewar, a professor of urban planning with the University of Michigan’s poverty solutions center. 

Dewar has studied the value of land bank programs extensively, and sees them as an opportunity to organize coherent initiatives around land reuse — as long as buyers are well informed of what they’re taking on. 

To the professor, that means “having very explicit information about what is wrong with the building and what will have to happen.”

“What that will cost and how to get money, or what key resources are available for that against someone's financial situation, and just trying to make sure people really, really know what they're getting into,” she said. “Then they can choose, but at least they aren't inadvertently trapped.” 

Programs comparable to Own-It-Now have been implemented by land banks across the country. The oldest land bank in the U.S. dates back to 1971 in St. Louis, Missouri. Eighteen states have since adopted laws governing land banks, which can exist on the regional, municipal, county or state level. 

DLBA has closed on more than 10,000 homes through the Own-It-Now program since February 2016. The median sale price is just $1,600 at auction — excluding potential back taxes and closing costs, according to city data. The most expensive home sold through Own-it-Now closed in 2022, for $77,100. 

Here’s a look at which homes have raked in the highest auction sales so far this year: 

5. $38,600

This Warren Avenue Community home is the smallest and newest of the bunch at 776 square feet, built in 1946. It still offers three bedrooms and one bath. It’s a classic red brick with white trim and a chimney adorned triangle roof. Out back, a detached garage and tool shed provide extra storage space. The sale closed in May.

4. $41,500

At 2,642 square feet, this Airport Sub structure boasts six bedrooms and three bathrooms, stretched across two units, an attic space and a basement. The home closed in February. Another red brick beauty, this one standing since 1924, it is surrounded by wildflowers on a large lot.

3. $45,000

This Islandview home sale closed in April. It’s just the latest chapter in the 113-year-old property’s long history. The 3 bedroom, 1 bathroom home sits at 1,710 square feet. It’s an all brick structure with a wraparound porch, basement and grand front room.

2. ​$51,000

With four bedrooms and two bathrooms, this 1925 home was pulled from the demolition queue to find new purpose through Own-It-Now. The Fox Creek crib has an area of 1,477 square feet, and boasts a basement and an enclosed garage. It was purchased in July. 

1. ​​$64,080

This 1913 North End home has two stories with a front porch for each. At 2,036 square feet, the space offers six bedrooms and two baths. The home closed in February. It has the look of an old school duplex, situated on a large lot with a paved driveway. 

Prior to the land bank, “properties owned by public entities were scattered among many and many places,” said Dewar. “The city didn't really know what it owned. It didn't sell in any thoughtful way.”

Dewar has assessed the reuse outcomes of homes sold through land banks compared to tax auctions, and has seen much more positive results with the former. Homes sold through a land bank are, “more likely to be maintained and actually used in some way,” said Dewar. 

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But the low-dollar deals come with a spate of caveats. Own-It-Now homes haven’t been cleaned out or secured, and the new buyer may have to pay back taxes in addition to the auction and closing costs. And in line with the underlying hope that these buyers will bring new life to the neighborhood, must commit to rehabbing homes and uploading progress photos to a compliance team every 45 days after purchase. Good faith efforts to have the home occupied must be underway after closing. 

In order to be eligible to make an offer, buyers must be Michigan residents or willing to move, and cannot have outstanding delinquent property taxes in Wayne County, blight violations or have lost property on account of unpaid taxes in the past three years. The same rules apply for companies looking to make a purchase. 

Carmela Guaglianone is a Dow Jones News Fund data intern with the Detroit Free Press. Reach her at cguaglianone@freepress.com.