Prices cited in failure of NSP homes to sell

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Updated: March 11, 2012 8:23AM

ELGIN — The city may need to take a second look at where three homes — renovated by Elgin through a  Department of Housing and Urban Development  program — are priced at, according to at least one city council member.

John Prigge requested Wednesday night that the council talk about those prices at an upcoming closed session after hearing that those homes have remained on the market for the past six months.

The city of Elgin received $2.16 million in Housing and Urban Development (HUD) Neighborhood Stabilization Program money more than three years ago to buy, renovate and sell properties in the distressed housing market.

However, the homes also come with income requirements for the buyer. A single person can’t make more than $63,000 a year — and a couple no more than $72,000 per year — to qualify to buy one of the homes. Buyers also must take a home ownership class through the Neighborhood Housing Services of the Fox Valley.

The council heard a report Wednesday night from Mike Simpson at Realty World Fox Valley, one of two local Realtors the city has contracted with to sell the homes.

In the past six months, the two homes he is handling — one at 457 E. Chicago St. and one at 463 E. Chicago St. — have received an average of 1,000 views each month on Internet-based list services, including Realtor.com, Simpson said.

But those views have yet to translate to a sale for either home. Both homes are priced at more than $200,000 each and include amenities not often seen in historical homes that are more than 100 years old, he said.

The negatives they’ve heard from buyers, however, include concerns about the neighborhood and not having a garage on one of the homes, he said.

Price is probably a major factor in why the homes have not sold, Prigge said.

If he were living in a home for sale, after six months on the market there would be a conversation with the real estate agent about lowering the asking price, Prigge said.

“With our NSP homes … there is so much invested in these” to not get them sold, he said.