Notice that the property taxes for 2009, and presumably annually thereafter, that this buyer will pay, are $3900.
Therein lies the reason the property is worth $1. Property taxes are inversely related to property values–a key reason CA’s Proposition 13 taxes are good for our values.
The puzzle here is why Detroit and similar cities don’t get it, and continue to drive people and businesses out of their state with high taxes and big government. Meanwhile they blame imports, discrimination, and other convenient scapegoats for their deterioration.
