Tax foreclosed properties from across Oakland County were put up for auction last week as Oakland County Treasurer Andy Meisner conducted the 2017 Oakland County Land Sale. Two hundred fifty-nine properties—including residential and commercial properties as well as vacant lots—were sold for a combined $10.7 million.
“The Land Sale marks a new beginning for families finding new homes, homeowners purchasing adjacent lots, and businesses looking to invest and expand,” said Meisner. “Not only am I pleased that our team administered our state-mandated responsibility efficiently and effectively but the strong demand shows that Oakland County properties are a good investment for home buyers and entrepreneurs alike.“
Among the success stories coming out of the two-day event:
• A young family from Novi who purchased an eyesore property adjacent to their home, telling Meisner they plan to clear the property and create play space for their children.
• Hazel Park building with residential and commercial features sells to local man with plans to open a bakery on the site.
• Multiple families purchasing homes to serve as their primary residence, including several first-time home buyers.
• Meisner met with several local entrepreneurs who, after researching available properties, purchased parcels to fix up and serve as investment properties.
Held July 18 & 19 at Ultimate Soccer Arenas in Pontiac, the land sale featured an auction of tax foreclosed properties following the end of a 28-month process proscribed by state law. Properties foreclosed in 2016 are for non-payment of 2014 property taxes. Starting bids are always set at the amount of delinquent taxes, interest and fees that are owed on the property.
“Despite our efforts to prevent foreclosure, including over 18,000 payment plans and home visits from the Treasurer, foreclosure means someone has abandoned or is losing their property. There are people in our midst who are still hurting,” Meisner said. “I try to inject compassion into the process and work with well-meaning taxpayers to find ways to prevent foreclosure but ultimately it is my job to ensure accountability on behalf of the 96.9% of residents who do pay their property taxes on time.”
Some key takeaways from the 2017 Oakland County Land Sale include:
• 580 parcels were foreclosed in 2017, down from 626 in 2016. Tax foreclosures peaked in 2012 at 1,650.
• 100 foreclosed properties were claimed by local governments, which have the statutorily-guaranteed “right of first refusal.” Many have programs that work with local non-profits to rehabilitate the properties and promote home ownership. Three properties were withheld from auction due to judicial order.
• Of the remaining 477 parcels that went to auction, 259 were sold over the two days. This is roughly equivalent to sale ratios from previous years.
• Properties that did not sell will be put up for sale at an auction later in the year.
• Of the 218 parcels remaining, over three-quarters are vacant lots, are landlocked, or have condemned structures awaiting clearance. A portion of land sale proceeds go to maintenance of this portfolio of properties remaining in the care of the Treasurer’s Office, including lawn cutting, securing properties, and safety measures.
• Average sales price was $41,805. The average sales price has risen each year since 2012 when it was $19,101. The average sales price in 2016 was $36,851.
• The 2017 Land Sale premiered a GIS system that allowed prospective bidders to view properties on-line with more available information than ever before including a map, assessor data, and property-specific descriptions. Developed by Oakland County’s IT Department, the site received over 6,000 hits in less than a month, averaging over 100 views each day.
• Once again the “Realtor to the Rescue” program, an award-winning public-private partnership with local realtors to help connect tax foreclosed properties with home buyers, helped drive auction participation and contributed to the success. Realtors help market the properties, find families who will live in their homes and can earn a commission based on the final sales price if their client is the high bidder at the auction. The program was recently named one of the “100 Brilliant Ideas” by the National Association of Counties (NACo) and named best-in-category for economic development in the 2017 NACo awards.
Meisner stressed the steps taken to curb real estate speculation. “I don’t accept same-day registration by auction participants which limits whimsical purchases. Additionally, unlike other counties I do not conduct the auction online preferring in-person transactions so I can look buyers in the eye and say: ‘Thank you for your interest in Oakland County property. We expect you to make quality renovations to these properties, pay your property taxes, and contribute to the recovery of our property values and stabilization of our neighborhoods.’ That’s good for everyone.”
The Treasurer’s Office will be holding its’ second land sale in October. The list of properties for sale will be made available online and at the County Treasurer’s Office within about 3 weeks of the sale. For any questions, contact the Treasurer’s Office at 248-858-0611 or go online to www.oakgov.com/treasurer.
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