STURGIS — The city of Sturgis has hired a real estate agent to sell homes that the city developed on the north side of Bear Butte Creek along Woodland Drive.
Sturgis City Manager Daniel Ainslie said the city prepared a request for proposals looking for a realtor within the city limits of Sturgis. That person would market and sell the four homes.
The city received only one proposal and that was from Krysti Schulz owner/broker at the Real Estate Center of Sturgis. Her bid was for $4,000 per house plus taxes, and half of that would be donated to local charities, Ainslie said.
In her proposal, Schulz listed the charities as Realtors for Kids, which serves children in the Northern Hills, and the Sturgis Rally Charities Foundation.
The Sturgis City Council, at its Nov. 4 meeting unanimously approved a professional services agreement with Schulz.
Potential owners of the homes must meet income criteria verified through Meade County Housing to qualify for purchasing.
Schulz will help potential buyers with all the paperwork concerning the purchase and closing on the home, Ainslie said.
When the city of Sturgis recently commissioned a housing study, it showed the need for medium to lower income housing. Ainslie said the homes fill the need in the community for affordable housing.
The Woodland Drive homes are listed for $179,000.
So, without taxes and insurance and at 4% interest on a 30-year mortgage, the payment on the house would be $859.35. An estimate of property taxes in the city of Sturgis for a $175,000 house is about $2,000 to $2,500. Homeowners insurance could cost $2,000.
Mortgage lenders say not more than 43% of a family’s gross income can go to pay for housing.
Each of the four new 1,200 square-foot homes have three bedrooms and an attached extended two-car garage and large yard area.
The city purchased the Governor’s Homes. Then paid contractors for the building of foundations, garages, sidewalks, and utility connections for the homes to be built on the city land.
Ainslie said the city will recoup what has been spent on the home preparation and placement with the sale of the homes.
Sturgis City Councilman Mike Bachand said that road improvements along with stormwater, water and sewer improvements near the Creekside Development cost upwards of $1 million.
“That is not necessarily a direct cost for the homes, but I don’t think we’re going to make any money on them,” Bachand said.
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