FAQ for Rehabbed & Ready

1.  How do I find more information on the Rehabbed & Ready homes?

Information about the homes that are for sale can be found by clicking on the Rehabbed & Ready button on the buildingdetroit.org site, or by calling (866) 918-7874. The homes are also listed on the Multiple Listing Service (MLS), Realtor.com, Zillow, Trulia, and other home search websites.  To receive additional information on a specific home, complete the “Request More Details” request on the individual property page for that home or call (866) 918-7874.

 

 

2.  Can I visit a Rehabbed & Ready home?

Open Houses are held three times a week for every Rehabbed & Ready home that is currently for sale.   Open Houses are held on Tuesdays and Thursdays from 4:00pm to 8:00pm and on Sundays from 12:00pm to 4:00pm.  All Open Houses are open to the public.

 

 

3.  How is buying a Rehabbed & Ready home different from winning an auction house from the Land Bank?

Rehabbed and Ready homes are move-in ready and do not require any rehab work. These homes have been updated with brand-new features, including new electrical, plumbing, high efficiency furnaces and water heaters.  In contrast, the Land Bank auction houses are generally properties where no rehab work has been performed, and the buyer is always required as part of the purchase to bring the house up to Code within a set time period.

In addition, the whole purchase process is very different between the two programs.  Rehabbed & Ready properties are sold through a traditional real estate process, with a set listing price and a purchase agreement submitted through a real estate agent.  Land Bank auction houses are sold in an on-line auction, so the final sale price is what the winning bidder is willing to pay and no real estate agents are involved.

 

 

4.  I’m an investor.  Can I purchase a Rehabbed & Ready home even if I don’t plan to live in it?

No, the Rehabbed & Ready program is only available to an owner who will occupy the home that he or she buys.

 

 

5.  How many properties can I purchase?

Each buyer can purchase only one Rehabbed & Ready property.

 

 

6.  Can I use any of the Land Bank discounts toward my purchase price for a Rehabbed & Ready home?

None of the Land Bank discounts can be used in the Rehabbed & Ready Program. This includes discounts provided to city employees, those recommended by nonprofit partners, those having completed housing counseling, and any other discount programs that may be added in the future.

 

 

7.  How do I make an offer to purchase a Rehabbed & Ready home?

You make an offer on a Rehabbed & Ready home just as you would to buy any other home – with the help of a real estate agent.  You can choose any licensed agent, or if you don’t have one already, you can call (877) 912-6278, or email rehabbedandready@inhouserealty.com, and they can refer you to a real estate agent who will assist you in making your offer.  The Land Bank will pay your agent the standard agent fee of 3% of the purchase price.

 

 

8.  How do I find out if my offer is accepted, and what happens next?

Your real estate agent will generally be notified of the Land Bank's response within 3 business days of the day your completed offer was received - if it was accepted, rejected, or if the Land Bank wants to make a counter-offer to the price or other terms that you proposed.

 

 

9.  What happens if my offer to buy the home is accepted?

  • You will have the right to have the home inspected, if you asked to do so.
  • As the seller, the Land Bank will pay all outstanding water bills, liens, and any delinquent property taxes at closing. In the future, you will be responsible for paying all current year real property taxes, prorated as of the date of closing, as well as property taxes in all future years.
  • At closing, you must pay the purchase price or cause your lender to do so, and down payment if any, plus closing costs, and the current year property taxes prorated to the date of closing.
  • At closing, you will receive a Quit Claim Deed and become the legal owner of the property.

 

 

10.  Can I have an inspection on the home once my offer has been accepted?

Inspections may be performed after the Land Bank has accepted your offer and both parties have signed the purchase agreement.  Your real estate agent and a Land Bank representative will coordinate to set a date and time to gain entry to the home to perform the inspection.

 

 

11.  What is the timeline for closing?

If you are seeking lender financing for the purchase of the property, you must close on the purchase no later than 60 days after the purchase agreement has been fully executed. The Land Bank will consider requests for closing deadline extensions on a case-by-case basis, with documentation from the lender that all required buyer documentation has been submitted for lender review, and that lender requests additional time for loan processing and a final loan decision.

If you are not seeking lender financing for the purchase of the property, you will need to close on the purchase no later than 14 days after the purchase agreement has been fully executed.

If you fail to close by the deadline, you may forfeit both your earnest money deposit AND your right to purchase the property. The Land Bank may immediately offer the property to other potential purchasers or place it back on the market.

 

 

12.  Can I close electronically since I live out of town?

Michigan does not allow electronic closings. Some of the documents the buyer executes require a notary which is not possible electronically. However, we will facilitate a “mail away” closing where the documents are mailed to the Buyers and their agent in advance and a closing agent will come to you.

 

 

13.  What will be the closing costs charged by the Land Bank?

The Land Bank does not charge any fee for purchasing or closing on a property sold under the Rehabbed & Ready Program.  However, you will be responsible for paying certain third-party closing costs, which are estimated to be in the range of charges set forth below.    

  • Any lender financing fees (there will be additional fees and costs to be determined by lender)
  • Title search fee – $100 - $150 depending on the title company that is closing the sale
  • Cost of title insurance if the you decide to purchase it (the cost of title insurance is based on the purchase price of the home)
  • Closing fee – $250 to the title company for its closing services. If you are obtaining lender financing, you will need to ask about any additional closing fees from the title company.  
  • Recording fee for the deed – $30 (if a mortgage is also being recorded, there will be an additional fee)
  • Tax certification fee – $25
  • You will also have to prepay the taxes in Michigan, since they are paid in advance not in arrears.

 

 

14.  Will I obtain clear title to the property at closing?

The Land Bank will provide you with a copy of a Title Search Report, which confirms the current status of the title, at the time of closing.  The Land Bank will issue a Quit Claim Deed as evidence of transfer of ownership at closing..  The Land Bank sells all properties "AS IS, WHERE IS, WITH ALL FAULTS."  The Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property.

 

 

15.  Will I be responsible for any back taxes or water bills owed on the property?

No, the Land Bank will pay all outstanding water bills, liens, or delinquent property taxes at closing.  Purchaser will be responsible for paying all current year property taxes prorated to the date of closing, as well as property taxes in future years.

 

 

16.  How much will my taxes be once I own the Rehabbed & Ready home?

Property taxes are determined by the City of Detroit Assessor based upon the Taxable Value at the time of sale, which will be equal to the State Equalized Value (SEV) of the property (or half the Fair Market Value of the property). More information can be found at the following links, or by calling the City of Detroit Assessor at (313) 224-3011.

Neighborhood Enterprise Zone Frequently Asked Questions:
http://www.detroitmi.gov/Portals/0/docs/finance/Assessment/Neighborhood%20Enterprise%20Zone%20Homestead%20FAQ%20-%2012.5.16.pdf

Principal Residence Exemption Form:
http://www.detroitmi.gov/Portals/0/docs/Property%20Assessment/August%202016/-L-2368%20Principal%20Residence%20Exemption%20(PRE)%20Affidavit%20Rev%2006-16.pdf

Other information can be obtained at the following web link:
http://www.detroitmi.gov/Government/Departments-and-Agencies/Office-of-the-Chief-Financial-Office/Office-of-the-Assessor

 

 

17.  Can I obtain financing to purchase the home?

Homes can be purchased with cash or through home financing with a lender of your choice. Quicken Loans is offering preapprovals for mortgage financing through its team of Rehabbed & Ready loan experts, who can be reached at (866) 918-7874.  Additional lender financing options and information can be found at http://buildingdetroit.org/Financing

 

 

18.  Is there a warranty for the work done on these homes?

The Home Depot warrants the installation services identified in the scope of work, for a period of one year, from the date that the installation services were completed. The Home Depot’s warranty does not cover damage caused by abuse, neglect, or improper care/cleaning. Products and materials provided by The Home Depot, as identified in the scope of work, are warranted exclusively by the product manufacturer’s warranty, if any/or as applicable. Purchasers may contact DLBA@HomeDepot.com for any warranty questions.

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Detroit Land Bank Authority
500 Griswold Street, Suite 1200, Detroit, MI 48226
313.974.6869
Communityrelations@detroitlandbank.org
The Detroit Land Bank is an Equal Housing Opportunity Provider and does not discriminate in the sale, rental, and financing of housing, or in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, age, height, weight, or disability.