Home Sold To Habitat = Big Impact
Jessica owned a home on the northwest side of Milwaukee that needed a fair amount of work. She had moved to Madison and wanted to put the property up for sale, but was concerned about what might happen to it.
“We didn’t want to see it purchased by someone who would either do poor work and sell it or do good work and price it out of the reach of many buyers,” Jessica said.
As a former Habitat volunteer, Jessica has an appreciation for the barriers that so many in our city face when trying to become homeowners. So, instead of listing the house for sale on the open market, Jessica sold her home to Habitat in what’s called a bargain sale.
A bargain sale is when a property is sold to Milwaukee Habitat for less than its appraised fair market value and the seller receives a charitable deduction for the difference between the value of the property and the sale price. With a team of Habitat volunteers, staff, and local contractors, the property was refurbished and will soon be listed on the open market. See some of the process:
The outcome is a WIN-WIN-WIN for all involved.
- Jessica is thrilled that the house is being refurbished and relieved that she didn’t have to worry about the remodel or listing process. Habitat took care of everything.
- Through the bargain sale, Milwaukee Habitat was able to purchase the home well below market value, while Jessica anticipates the charitable contribution will be more than $40,000.
- The proceeds from the sale of the home, which Habitat handles from start to finish, will be enough to sponsor the construction of another brand new Habitat home.
Through the bargain sale, Jessica was able to make this significant contribution while ensuring her own home would end up in good hands.
Milwaukee Habitat replaced the entire kitchen, installed drain-tile, updated the bathroom, windows, foundation, floors and more. The home, now move-in ready, will be the perfect starter home for the next buyer.
“This is definitely the way to go if you want to donate property as a charitable contribution and you value improvements in access to safe housing and homeownership,” says Jessica. “Jake [Habitat’s Real Estate Development Manager] listened to our concerns, needs, and values, and addressed every one with ease. We didn’t have to coordinate inspections or appraisals – he took care of everything. I’ve never done so little for a real estate transaction, and he immediately sent the documents we need for tax purposes to us. Now he keeps me updated on the progress they’re making on the house, which I love.”