After acquiring and extensively renovating a residential property located in an area hard hit by the housing crisis, the KCLBA was able to facilitate the sale of the home for far more than its original value. At the same time, the KCLBA helped neighboring homeowners realize increased property values.
Prior to the KCLBA’s purchase of this home, a neighboring property owner had been trying to refinance but was unable to generate a reasonable offer because this dilapidated property was dragging down their home’s value. Recognizing that the KCLBA would improve the blighted property and how that would positively affect surrounding values, the homeowners wrote a letter of support to the Kent County Commissioners asking them to allow the KCLBA to purchase the home.”
“Had the land bank not purchased and rehabbed this property, it would most likely have sold for much less. Because the land bank got involved and made an investment in the community, this house and the one across the street were able to maximize their potential. Everyone won on this transaction. Now there are two good comparables for any other neighborhood properties that might be listed for sale. The entire neighborhood benefits. It’s the perfect scenario for the KCLBA’s mission, and really proves their ability to function as a driver for economic development.”
Jim Ogg Greenridge Realty
Once renovations were completed, the neighboring home saw an uptick in value and the owners were able to successfully refinance.
When the KCLBA’s property was listed for sale at the same time as another across the street, the two listing agents worked together to create a selling strategy that would cross-promote the area and the quality of the housing stock. Due to the KCLBA’s work and the realtors’ collaboration, both properties were sold for a higher price, benefiting the owners, the neighbors, and future sales in the neighborhood.