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Update: Monday, 5:10 p.m. -- Bidding had gone up to $46,700 for the house on Bishop Street. Then it dropped to $46,600. Then around 5 p..m., the top bid had gone to $32,100.
What the heck was going on?
We inquired and a short time later, the city sent out an email:
We've determined some top bidders may not qualify, so we are adding 30 minutes to today's auction and rolling back the bid to $32,000. Bids will now close at 5:30 PM EDT
All potential bidders are reminded to be familiar with the auction rules, which can be found at www.BuildingDetroit.org/TheRules
At 5:40 p.m., when the bidding officially closed, the highest bid was $34,200.
Richard Cannon, a disposition manager for the Detroit Land Bank, told Deadline Detroit that one bidder was disqualified because they weren't Michigan residents, which is a violation of the rules. Another didn't have the money for the 10 percent deposit.
He said the higher bids raised some red flags because they went beyond the market rate. He said they started contacting some people directly during the bidding.
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If the first home is any indication, the city's auction-a-home program is likely to be a big success.
The city's website Building Detroit, showed that the first city-owned property at 4184 Bishop Street in the East English Village neighborhood had 100 bids Monday as of 2:55 p.m., and the top offer was $46,600. Bidding started at $1,000.
Another 11 homes will be auctioned off in the next 11 days. Each home is up for bid for one day, from 9 a.m. to 5 p.m.
The 1,400-square-foot home on Bishop Street has three bedrooms and 1 1/2 baths.
The website says:
Install a new furnace and water heater, and you will be securely tucked in the middle of the block in East English Village. Messmer playground is just blocks away. This 1941 colonial sports 3 beds and 1.5 bath in 1,400 square feet between Mack Ave. and Outer Drive E.
Under the rules, you must be a Michigan resident, a non-Michigan resident who will live in the property after rehab, or a company or organization authorized to do business in Michigan.
The site also notes that the "rehab cost will often cost more than the winning bid price. Failure to bring a property up to code within 6 months will result in forfeiture of property."
