I have been getting a lot of questions from Minnesota home owners and future buyers about the homestead credit previously available on Minnesota properties. The Minnesota Association of Realtors has recently put forth a helpful explanation about the new Homestead Market Value Exclusion (HMVE) that was created in the 2011 legislative session.

The new HMVE is a recent change to how homestead property taxes are calculated. It replaces the Homestead Market Value Credit (HMVC). Under the old credit system, the credit lowered a homeowner’s property tax burden based on the value of their home. The state then reimbursed local governments for the lost amount of their levy (revenues) due to the credit. However, due to the state’s budget problems, it was rare that local governments were fully reimbursed by the state. Eliminating the credit and creating an exclusion removes the possibility of the state withholding funds and creates more stability for local governments.

The new program excludes a portion of the homeowner’s market value from the property tax calculation. The amount of value excluded is directly proportional to the credit the home received under the old law. The actual tax burden on homesteads could be lesser or greater depending upon the mix of properties in the taxing jurisdiction and the levy decisions made by local governments (for more information on the technical calculations, please see further below).

Technical Calculations

 Description: Under the old credit system, the credit amount would rapidly increase as a home value approached $76,000 with the maximum credit amount of $304. After $76,000 the credit would decrease until it was completely phased out with a home value of over $414,000. The new exclusion mimics this same scale as homes approaching $76,000 would have a rapidly increasing exclusion of value, with a home valued at $76,000 receiving a maximum exclusion of 40% of their home value from property tax calculations. The percentage then decreases and is phased out at homes valued over $414,000.

Calculations

(Referendum taxes are not covered here)

If you haven’t had the chance yet to view the Parade of Homes, then today is your last chance to check out the newest trends in luxury new home construction. I was able to check out a few in my spare time this week, and I have to say that some of the homes are simply stunning. My favorite by far was the “Dream Home” located in Edina.

Not only does it sit on a fantastic lot, the design inside and out is classic. Designed by Charles Cudd De Novo, one of the premier luxury home builders in the Twin Cities, the home boasts 8700 square feet.

From this home and others on the market, here are some of the newest trends found in luxury homes in the Twin Cities:

• Deep, rich, and dark hardwood floors. Some almost look black giving a great contrast to the lighter colors of the home
• Built-in cabinets and bookcases everywhere. Many are made to look like furniture, placed in nooks and along walls. These features are not only classic, but very functional on eliminating clutter and keeping a grand home organized.
• Marble. For high end homes, granite is no longer the staple. The use of marble for counters and floors is being seen more and more, especially for tiled bathroom floors, tiled luxury showers, and kitchen/bathroom countertops.
• White cabinetry and trim has made a dramatic comeback with a high end twist. Many of the most expensive homes available today feature white everywhere, which mixes well with dark furniture or colorful accessories.
• Huge, organized closets worthy of Rachel Zoe.
• Informal office space open to the home. For instance, in the home above, informal space is part of the huge mudroom off the garage giving easy access to computers and such to family and children.

There are tons of additional features highlighted in the newest luxury homes found in Minneapolis, St. Paul, Edina, and Lake Minnetonka, but if you want a first hand glimpse, take a free day and visit some of the local open houses on weekends throughout the area.

Have you ever been driving around Minnesota and passed a lake who’s name you don’t know and wonder what it is? Well now the Minnesota DNR has created a phone application to help you out.

The LakeFinder contains data for more than 4,500 lakes and rivers throughout Minnesota and the application allows you to get the information on demand with an internet connection or save it to your device for off-line access. Have thousands of lake surveys, depth maps, and vegetation reports, plus water quality and clarity data literally in the palm of your hand. You can even save them as favorites.

Check it out on the DNR website, or visit your phone’s app store.

From Harrison Ford’s Big Apple penthouse to the late Elizabeth Taylor’s  Bel Air estate, you can own a piece of A-list real estate as long as you’re able to pay the price.

Celebrity homes are on the market all the time, with plenty to choose from, and compared to the recent rash of billionaire homes, they can be surprisingly affordable. Of course, some are still plenty expensive. Here is a look at some of the homes of the ultra-famous currently on the market, as listed by TopTenRealEstateDeals.com, which posts famous and unique homes weekly.

…..Read more at Forbes.com

If you are a lover of art and looking for something to do next weekend, then make sure to check out three great art festivals happening in Minneapolis.

• In downtown Minneapolis, the Loring Park Art Festival is on August 6 & 7th featuring over 140 artists. When your done, feel free to stroll across to the Minneapolis Sculpture Garden or visit the Walker Art Center.
• The 20th annual Powerhorn Art Fair is also August 6 & 7th with over 180 artists showing their talent.
• Not too far away is the Uptown Art Fair near Lake Calhoun. This was is much larger, with over 350 artists, and runs August 5-7th. Many of my clients love this fair having art pieces hanging in their homes purchased from local artists.

Getting to all three, if you can make it that long, doesn’t have to be difficult. Metro Transit is offering a free weekend ArtPass on LRT and bus lines, so you can park and ride all day long!

They may not exist in vast numbers, but currently there are 51 condominium units available city wide priced over $1 Million. Here is the top five countdown for most expensive luxury condominiums in the Twin Cities area:

1.  Phoenix on the River in Minneapolis – trying to live up to its luxury billing, the most expensive unit for sale in the Twin Cities could be yours for a mere $4 Million. It is located across the river and has fantastic penthouse views of downtown. With 3 bedrooms/5 bathrooms and over 6200 square feet this condo unit is under construction so right now it is only a dream.
2. The Harrington House in Wayzata– this three bedroom/three bath unit has over 4400 square feet, with amazing views of Lake Minnetonka. A few years ago these units were topping $5 Million,  but this unit is listed for great price of $3.9 Million.
3. Washburn Lofts in Minneapolis – $3.5 Million: Built in 2004, this 2 bedroom/3 bath condo unit has 4200 finished square feet and takes up the entire penthouse level. The night time views of the Minneapolis skyline are nothing but stunning, featuring 270 degree views of Minneapolis and the Mississippi River. Did I mention that is comes with its own terrace?
4. Phoenix on the River– did I forget to mention that this development holds not only the number one spot but number four as well? This under construction unit has 4 bedrooms/4 baths and over 5800 square feet, but is a little cheaper at $3.5 Million
5. The Manhattan House in St. Paul – oohhhh, this one is really pretty, not to mention the fantastic views! Located in downtown, this two level penthouse has 2 bedrooms/4 baths, and over 5000 square feet and is probably my favorite of the five. It will cost you just under $3 Million, but hey, that’s pocket change, right?

View More Information about these Luxury Condo Units:

Showing properties 1 - 1 of 1. See more Most Expensive Condos 2011.
(all data current as of 2/6/2012)

1. $2,825,000 : 350 Saint Peter Street ,Unit 1, St. Paul
   
   2 beds, 2 full, 2 part baths

   Home size: 5,100 sq ft

   Year built: 2009

   Listed with RE/MAX Results
   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Swamp Milkweed in Minnesota

Recently I was reading an article in the Star Tribune that just makes you shake your head in wonder.  The City of Edina and some of its residents seem to dislike the growing natural area around the new Public Works building as it looks too “weedy”. I guess people just can’t appreciate the pink blossoms of Milkweed (which is the only thing Monarch butterflies lay their eggs on), or the beauty of yellow sunflowers swaying in the breeze. The complainants prefer manicured yards to nature and rain gardens, and want the city to start mowing the area.

Now, I really hate to go into how stupid the Mayor and Council member sound in the article, but that’s what happens when you are not educated about a subject. They need to take a class on native wildflowers, grasses, and rain gardens before they go any further on this topic and discover how beneficial this green movement can be to their town.

I first learned about Rain Gardens when I moved to Minnesota through the Blue Thumb program. I attended a class as I was curious about how they work. Simply, instead of rain water going directly off streets into sewers, the rain water first goes through the rain garden and then into the ground, thus helping keep pollutants out of our rivers and lakes. Case in point, the City of Burnsville conducted a study of the benefit of rain gardens by implementing them in a test neighborhood, and the results show how beneficial such gardens are to storm water runoff.

There is a strong push in Minnesota to go native. Prairie planting with native wildflowers is becoming much more common. Instead of bushes, home owners are planting perennial wildflowers and quite frankly, I think yards are looking better. Wildflowers offer fantastic curb appeal, not to mention low maintenance.

 Sometimes rain gardens are new to city planners, so you might have to educate your town. I requested putting in a rain garden on our property easement due to the steep slope, as rain just pours down one side of our property line, but the city member I spoke with just looked at me with dumb look on his face and asked what a rain garden was. I was then told that plants could not be put in an easement. When I explained what a rain garden does, he stuck to his guns and said no, I could not get permission to put one in. Maybe he needs to see Burnsville’s case study, and other Minnesota towns success, to get a better idea on the benefits of natural plantings.

Going prairie in Minnesota seems to be the future. The low maintenence reduces city costs while adding natural beauty to the area.  If you are interested in learning more about native plantings, the best resource I have found is the Blue Thumb program or your local county website. Here are a few other resources to check out for more information:

• Minnesota Native Landscapes
• Minnesota Native Plant Society
• Prairie Restorations
• Rain Garden Info

The New York Times has a great interactive map which gives insight into population growth and decline, housing trends, and ethnic/racial concentrations.  Real estate agents are not allowed to comment on neighborhood/city demographics, so this interactive tool will answer many of the questions you might have. You are even able to zoom into Twin Cities neighborhoods to get a  more detailed look on what is going on in your neck of the woods.