Parsonage Sale

The parsonage has been sold.  The sale price was $357,500 which netted UUMC $339,292.23.  

The original signed contract was for $400,000, with an appraised value of the house of $385,000.  House inspections revealed 5 major problems.  The sewer line was cracked underneath the basement floor.  Rebar had been exposed and rusted in the concrete floor of the house.  The electrical mast bringing power into the house had chafed wiring and needed repair.  The shingles and gutters on the house were past their life expectancy and in need of replacement.  The biggest item was structural deficiencies in the roof that had led to cracked and sagging major support members.  The trustees agreed that the buyer’s request for compensation for these items should be granted.  A midpoint of bids for the items was calculated to be $42,500.   The Parsonage would be sold ‘as is’ with cash compensation to the buyer to make the repairs.  

However, the original buyer lost his job during the final stages of loan negotiation so the loan agreement could not be granted.  Our realtor contacted a company that renovates old homes and resells them.  They were willing either to assume the contract or offer us a cash settlement of $357,500 which would net us the same amount as the final contract.  The trustees agreed to take the cash, ‘as is’ offer from TPA Investments, LLC.  This company will fix all of the needed items, update the kitchen and bath, and make other improvements.  

The proceeds from the sale will be placed in an investment account with the Missouri United Methodist Foundation.  The trustees used a historically conservative earnings estimate for this account of 3% which will provide $10,180 towards the pastor’s housing allowance.  UUMC’s current annual budget already includes $8000 for parsonage expenses.  These two combined will cover the proposed $17,500 annual pastor’s housing allowance with a little to spare.

The housing allowance allows our pastor the freedom to choose where she lives and the opportunity to build equity in a home throughout her career.  The trustees are now freed from the ever increasing tasks of maintaining the parsonage and can now concentrate on our church building.  We are also no longer at risk of surprise parsonage expenses which just in the last three years have totaled over $10,000 that was not in our annual budget.  After several months of intensive work on the parsonage, all the trustees agreed that there was ample opportunity for a steady stream of more surprises.  

Thank you all for your encouragement throughout this process.  The trustees are very happy to have the sale behind us and look forward to serving all of you in a much more visible and productive manner.