A must-sell with riverfront views

Luzerne County government is in the unusual position of owning a house in West Pittston and must figure out how to sell it.

County council members discussed options last week to seek bids or hire a Realtor.

The county recently acquired the house on Susquehanna Avenue as part of its settlement of 2018 litigation filed by Richard and Kimberly Hazzouri. The Hazzouris argued they were wrongly prevented from participating in a borough flood buyout program funded by disaster recovery assistance channeled through the county community development office after record 2011 Susquehanna River flooding.

The litigation settlement awarded $650,000 for the property — $585,000 from the county community development office, $50,000 from the county’s insurance carrier and $15,000 from West Pittston’s insurance carrier. Since the settlement was separate from a flood buyout that would require demolition, the county is free to sell the property to recoup some of the money lost paying the settlement, officials said.

During last week’s work session discussion, county Councilwoman LeeAnn McDermott said the property should be sold as soon as possible, which is why she was raising the subject with the full council instead of first reviewing options through the council real estate committee she chairs.

Council Chairwoman Kendra Radle said she prefers accepting bids because it would take council longer to set up a process to seek, screen and choose a Realtor.

Councilman Kevin Lescavage suggested seeking proposals from Realtors and choosing the one offering the lowest commission rate. A Realtor can ensure the property is widely advertised, he said, noting West Coast buyers purchased two houses that sold in West Pittston in recent months

“So while local people weren’t stepping up to that price range, people from the West Coast purchased those similar houses,” Lescavage said.

McDermott said a Realtor listing would place the property on the Multiple Listing Service, or MLS, accessible to other real estate agents seeking properties for clients.

Councilman Chris Perry asked McDermott which option she recommends.

McDermott said she was not sure. She agreed bids may be the fastest option but said a Realtor may attract out-of-area buyers willing to pay more, which could justify the added time and expense.

Radle advocated seeking bids, saying there is already strong local interest in the property. She said she was aware of at least three serious inquiries.

Councilman Robert Schnee concurred with the bid strategy. Many buyers are making offers above asking prices because the demand for residential properties exceeds the supply in the current robust real estate market, he said.

“This is the perfect opportunity,” Schnee said.

Councilman Carl Bienias III proposed an idea to first seek bids and then consider a Realtor if the county is not satisfied with the response.

“I think we’re going to get a lot of bids on that property,” Schnee said.

McDermott said the county would have to set a minimum bid based on the appraised value. She agreed to research the county’s existing list of appraisers to inquire about valuing the property.

The $650,000 purchase price of the Hazzouri property was based on an appraisal of its pre-flood value.

Lescavage said he believes the county should seek at least $500,000 based on sales of similarly-sized properties.

The county’s law office has said in the past the minimum bid must be based on fair market value as jointly determined by council, the county assessor and a certified outside appraiser.

Council is expected to further discuss the plans at its next meeting on April 26.