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“Give them a high-quality product at a nice sale price. … The city now has a new house on the tax rolls. We’ve hopefully made a buck and its improved the neighborhood.”
The city EDA spent about $950,000 buying the 17 old houses. Most of the original homes were 600 square feet or less, Clark said. The city is now selling 13 of the lots to the builder. Most will be sold for $7,500 each. The price may seem low at first glance, but the ultimate goal was to make sure the new home-plus-land price hit the $160,000 price point for appraisal purposes, Clark said. Otherwise, the average first-time home buyer would not have been able to finance one of these homes.
This is why cities get involved with this type of redevelopment, Clark said. These small projects don’t generate profit. “If the city would have made money, the private sector would have done it already,” he said.
To learn more about the lots for sale, go to ReMax Synergy’s website at www.twincitiesrealestateassociates.com
Shannon Prather • 612-673-4804