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Can anyone explain to me the ridiculous price difference between the 2 listings? The obvious is that the $250 house needs a lot of work to be done, but it still doesn't account for such a vast price difference. Don't tell me the $549k condo is located in a better neighborhood. These 2 buildings are located about 5 miles apart. For the life of me, I can't fathom how such an expensive condo exists in a city with the highest murder rate in America and the largest municipal bankruptcy in history (not to mention the high property taxes and car insurance rates).
the $250 house probably needs a complete rehab. prior to rehabbing it, you can likely spend thousands paying off the back taxes that are presumably owed
the condo is updated, twice the sq footage as the detached home, and appears to have a more desirable river view
Even just 5 miles can make a huge difference in a lot of cities. I live in St. Louis which suffers from problems similar to Detroit, and you can be in an amazing area one minute, and then head a couple of miles in the wrong direction and you're looking at a completely different world.
As others have said though, the problem with a lot of the super cheap properties is that they may have years of back taxes owing on them, which becomes the responsibility of the new owner. Also, without seeing inside, the house may well be a full gut job, or it may have structural issues and be a tear down.
Nobody wants to live in the area with the $250 home. It's definitely one of the bad areas of Detroit. I agree that there are probably thousands of dollars in liens, so the number quickly adds up.
Can anyone explain to me the ridiculous price difference between the 2 listings?
The expensive house is in a safe neighborhood, waterfront, and watched over by a door man and other staff.
The cheap house is in the ghetto. It will probably be broken into on a monthly basis, your car windows smashed and your chances of getting shot or assaulted are very high. Tons of murders and drive by shootings in that area.
Can anyone explain to me the ridiculous price difference between the 2 listings?
You answered your own question by saying:
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the $250 house needs a lot of work to be done
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the $549k condo is located in a better neighborhood
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These 2 buildings are located about 5 miles apart.
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For the life of me, I can't fathom how such an expensive condo exists in a city with the highest murder rate in America and the largest municipal bankruptcy in history (not to mention the high property taxes and car insurance rates).
You can buy a house then have instant liabilities. Homes could be stripped and you can't get regular financing, so you have to use your own cash. You also won't know it if it was a meth house. If you gold some of these places "$100 homes in detroit", you can see some are actually burnt and vandalized.
I've though about buying up blocks and making a compound.
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