NSP FAQ
Q

Can grantees reduce the sales price of a house assisted with NSP funds if the house is not selling?

Date Published: October 2012

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A

NSP requires that grantees set an NSP house's sale price at no higher than the appraised value or total development cost, whichever is lower. If a home is not attracting offers, it is possible that the asking price was set higher than the current market or higher than a price affordable to the target population. For example, if a home does not sell after 60 days of strong marketing and sales efforts, it may be necessary to lower the price in modest steps. However, a price reduction is generally not justified unless the marketing and sales effort has been consistent and diligent. Note that lowering the sales price may undermine neighborhood housing values in some markets. An alternative to lowering the sales price is to offer potential buyers a higher amount of homebuyer assistance to purchase the home. For additional guidance see the December 13, 2011 NSP Webinar Determining Sales Price.

Presentation slides, transcripts, and recordings for all NSP webinars are available at the NSP Learning Center.


Tags: NSP Program Requirements - Marketing and Selling Properties

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FAQ ID:

874