have not yet been captured by public record data. The analysis found that an esti- mated 41,000 of the renovated foreclosures resales to owner-oc- cupant buyers were in low-income neighborhoods—defined by the Federal Housing Finance Agency (FHFA) as census tracts where the median family income is at or below 80% of the surrounding metro area’s median family income. RENOVATING RESPONSIBLY Investor Sue McCormick resold two renovated foreclosures to owner-occupants in 2021 in her hometown of Dayton, Ohio. Both were in low-income census tracts. “I grew up in an area that was a predominantly Black, working-class suburb of Dayton,” McCormick said. “Some of the areas where I grew up have taken a big hit. … There are some areas that have been hard- hit by things like drugs and crime. Some of those areas I’m investing in, and they’re starting to turn again so that’s exciting to see.” Most of the renovated foreclosure resales came from local community developers like McCormick and Wen- zel who sell a handful of renovated foreclosures a year in communities they care about. “We care about the details because this company is a family-run com- pany and it’s not a cash grab,” said
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Sue McCormick spent $40,000 renovating this property in her hometown of Dayton, Ohio, after purchasing it at foreclosure auction on Auction.com in December 2020 for $39,000. Renovations included a new roof, new subfloors and floors, a completely redone kitchen and bathroom, and the addition of a third bedroom. She sold the property, located in a low-income census tract, to an owner-occupant buyer in October 2021 for $140,900—3.6 times the median income in the tract.
“When we walked into this space, the land really lends itself to looking like a farmhouse, so we went with that,” said Gaines, describing her approach to the redesign. “And the layout I think really assists in that. So, when we were thinking about flooring, lighting, staging, we always kind of stay on the same path of what the house is telling us to do.” •
McCormick’s daughter, Alexis Gaines, who has been helping her mother renovate and redesign distressed homes. “We really want to enrich these neighborhoods, and we really want to create people’s new forever homes. “ Gaines managed the redesign and renovation of a Dayton-area home that McCormick purchased on Auction.com via foreclosure auction in January 2020. The property was resold to an owner-occupant buyer in October 2021 following extensive renovations that included a new roof, new subfloors and floors, a com - pletely redone kitchen and bathroom, and the addition of a third bedroom.
Daren Blomquist is vice president of market economics at Auction.com. In this role, Blomquist analyzes and forecasts complex macro and
microeconomic data trends within the marketplace and industry to provide value to both buyers and sellers using the Auction.com platform.
30 | think realty magazine :: may – june 2022
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