By Cortney Drakeford and Alana Ransom
BengalNews Reporters
Real Estate Broker Dave Weitzel spent about $20,000 at the city auction for a vacant two story home at 458 Vermont St.
His dreams at first were to make the two-story home a duplex but realized the challenges that came along with building a duplex when entering the property. His dreams may cost more than he expected.
People like Weitzel can be presented with problems and costs they weren't expecting when they buy properties in the annual city auction.
When Weitzel first saw the property, he did not realize there was a second house on the property. His dreams of a duplex soon changed to rehabbing both single-family houses.
Real estate broker Dave Weitzel on rehabbing a Vermont Street property:
Weitzel says it has been a slow process on the house. There are so many issues with the home that need to be handled. Some for example are the electricity lines because a main power cord has been broken. Flooring and walls need to be fixed because of water-pipe damage. The basement is one of the main places that need fixing and ceilings in the houses need fixing as well. Walls will be broken down and new pipes and gas tanks will be installed in the home.
Although Weitzel has made some changes, he still has a few issues with utility and other things in the houses.
“Challenges building a two story home are trying to figure out how to separate the utilities and it doesn’t help when the utility company doesn’t know how to have water running throughout both houses because they do not know where the water line is for both houses,” Weitzel says.
Weitzel plans for both houses to be almost ready in about three or four months. He set the selling price at $150,000.
They are not able to see the homes before purchasing them and are not able to see the conditions they have to deal with inside the homes.
Investors are able to go to the neighborhood and ask questions to people who have been around for a long time in the area to find out what kind of work needs to be done in the home. They also have to make sure they start working on the house as soon as they buy it because if the city sees no progress being made as investors promise, the city will take investors to city court.
Before rehabbing homes, there is a process that has to be followed. First, the homes go into arrears, which are when two tax years have not been paid. Once property is cleared in arrears, then people will receive letters about the vacant homes. The city holds an auction presented by the chairman of assessment and taxation. Investors bid on the property. Bids start at $500. Twenty five percent of the money has to be paid on the day of the auction. The remainder has to be paid within that month.
Auctions are in October. Auctions are held at the Buffalo Niagara Convention Center.
“The city produces a list of homes to be auctioned the first part of June and it can change up to the day of auction because owners can satisfy the bill. The fiscal year is July 1st to June 30th of the next year,” says Assessment Clerk Al Thompson.
If no one bids on the property, the case is adjourned and the house goes back to the owner.
The tax law allows the city to foreclose property if it does not satisfy the tax bill. If by the end of year owners do not comply to pay with property taxes, the city enters an agreement preventing the foreclosure of a home until the money is paid.
“Foreclosure in the city charges an increasing amount of money as penalty,” says Thompson.
Overall, many people feel houses being rehabbed are beneficial for the community.
“It is a good investment. When someone is beneficial they take care of the property and live in it. The houses are affordable for people who want to migrate to the West Side,” says Sean Mulligan, Legislative Aide to Councilmember David Rivera.
Houses tend to stay affordable so low income families can stay in the neighborhood, he says.
“People(s) views on the west side are changing. We let them come visit and they see what is being done for the community and quickly change their minds. They see that the West Side is a pretty nice place and are exposed to the diversity of people and the education system,” says Mulligan. Edited by Richard Cumpston
