Joining the ranks of Southways (the highest priced luxury home on Lake Minnetonka at $24 Million), the historic home owned by Irwin Jacobs hit the market for $22 Million last week.
The original home was built in 1939 for Charles Bell, son of the founder of General Mills. Named Tanager Hill, the home has been added on to over the years and sits on a hill overlooking Lake Minnetonka. It boasts 32 acres, almost 13,000-square-foot main house, a 3,500-square-foot guesthouse, a pool house, two caretaker houses, a barn and a guard house.
Sadly, there is talk in the media of this property being divided off into small home sites, and while some say there is no way the main house would be torn down, recent history on the shores of Lake Minnetonka prove otherwise. The historic Northrup House on Ferndale is slated for demolition, as is the Modernist Era home next door, two homes with such architectural significance that local residents never thought new owners would tear them down to build even bigger homes.
Will Tanager Hill sit on the market as long as Southways has? Possibly. Will anyone really spend that kind of money on a property in Minnesota, even if it can be split into smaller lots? Highly unlikely.
[idx-listing mlsnumber=”4440967″ showpricehistory=”true” showlocation=”true”]
The other night I was fortunate to take a three hour boat ride around Lake Minnetonka. It was the perfect crisp autumn night and the sunset didn’t disappoint – blues then to reds.
Here are some good suggestions on what to do before you purchase a home.
- Look for Lenders that cater to the affluent – A buyer looking as a $4 Million home doesn’t go to Lending Tree for a loan. You need a mortgage company with a history of upper bracket real estate.
- Shop on the Internet, but don’t look at a home without a Realtor – The Internet is real estate’s most versatile tool and is a great way to browse for luxury homes and narrow down your choices. Look for a real estate agent that specializes in upper bracket homes and be honest with them about your purchasing power.
- If you call on a listing, talk to the Listing Agent of the property – The best number to call is the agent’s cell phone, or better yet, email them. If you do have to call the office, leave a message for the listing agent. Often buyers who call about a home will only get the floor duty agent, who is always new.
- Use an Agent that is an expert in the market and works the Luxury listings – Great agents are great agents, but if they don’t work specifically in your target price range in your target location they will not be as valuable a resource an agent who does.
- Special properties need special agents – Ranches, waterfront, equestrian estates, all require specialized knowledge. Buyers will not know the zoning laws and potential problems associated with specialty properties, but your agent working in that arena will. An agent who does not normally work with Luxury homes could be a liability to you.
- Know who handles the closing – How homes are bought and sold varies by state, county and region. Attorneys might handle the sale in some states and a title company in others.
- Get an Estimate on Closing Costs – Closing costs vary by state. You also need to know if property taxes are prorated and if the state levies taxes off the purchase price or mortgage. These can be pricey when buying an expensive home.
- Ask Questions about the local Luxury Market – Get to know the purchase documents before hand and it will help you make a better offer. Good agents educate you about the market, what is selling or not selling, and guide you through the buying process. Remember, there are no dumb questions!
Look for my next two installments of this series in the upcoming weeks!
It looks like the lack of rain is taking its toll on Minnesota lakes and rivers. According to the state climatology office, the last three months near zero precipitation is making most of Minnesota rainfall totals rank at or below the lowest on record. The DNR is also calling for water conservation across the state and is giving examples of how the drought conditions are affecting the State’s water levels:
- Water conflicts between users and uses are emerging in more places.
- Nearly one-half of the state is in severe drought or worse; severe drought is considered a one in 10-year event; extreme drought is considered a one in 20-year event.
- The extent and geographic distribution of the current drought is rivaling the extreme drought event of the late 1980s.
- Large areas of Minnesota have missed the equivalent of two summertime month’s worth of rain.
- Soil moisture levels are at or below all-time low values for the end of September.
- White Bear Lake’s water level has hit its lowest point on record.
- It is a dire situation going into the 2013 growing season.
For Lake Minnetonka, the current water level is a foot lower than it was a few months ago, and about 18 inches lower than at the beginning of summer, according to the DNR and an article from the Lake Minnetonka Patch. The lowest recorded water level ever recorded for Lake Minnetonka was in 1937, putting it about 6 feet lower than the recent October 2012 measurement.
You might wonder why Lake Minnetonka water levels might matter so much to the Twin Cities. The answer is simple – it is the beginning of the Minnehaha Creek watershed which encompasses “181 square miles that drain into the Minnehaha Creek and ultimately the Mississippi River. The watershed includes Minnehaha Creek, Lake Minnetonka, the Minneapolis Chain of Lakes, and Minnehaha Falls and there are eight major creeks, 129 lakes, and thousands of wetlands” affected by decreasing water levels. Low levels in the watershed mean a low Mississippi River, which can already be seen in areas down to the Gulf of Mexico.
While levels are not at record lows, it is a concern for the upcoming years if we don’t get rain soon. If the winter brings no snow, conditions will only worsen in the spring and make for a very dry 2013. Maybe it’s time to start the rain dance.
The luxury home market in the Twin Cities has taken quite a beating the last couple of years. Home values have plummeted, putting what were once million dollar homes into lower price ranges. For some home owners who bought 2005-2008, the news has been less than welcome, even devastating. Foreclosure was inevitable for a few, other have been able to refinance. But one thing I have learned from speaking to luxury home owners, they are taking it all in stride and working with the cards they have been dealt.
Currently the inventory of luxury homes has been dwindling across the Metro, good news for home sellers. Less inventory means less choices for buyers, and gives sellers a better chance of selling their home. In Spring 2010, there were about 680 available homes for sale. Two years later, that number is down to around 615. As is typical for real estate in Minnesota, home inventory increases over the summer months, topping out in August and September. It will be interesting to see how the summer progresses and if the overall inventory remains low.
When it comes to how long a luxury home takes to sell in the Twin Cities, real estate agents turn to Days on the Market data. With Spring comes buyers. After waiting through the winter, they come out from the shadows and pluck down money for luxury homes. For reasons you can imagine here in Minnesota, it typically takes longer to sell in the winter. Starting this Spring 2012, the days it takes a luxury home to sell hovers around 170 days. While this may not sound like good news, when you compare it to Spring 2010 which hovered around 235 days, our current real estate market it doing quite well. I am pretty sure home owners would like 2012 market trends over two years ago!
If you are thinking of selling and would like a free micro analysis of your home in today’s market, please contact me!
(Data is comprised from top 10 most expensive zip codes in Minneapolis, St. Paul, Lake Minnetonka, and surrounding Twin Cities Metro areas, using homes priced above $500,000)
In case you missed it, the Pillsbury Mansion “Southways” was quietly put back on the market in October 2011 for $24 Million, a far cry from its previous listing price a few years back of $54 Million. Located at 1400 Bracketts Point Road in Orono the home sits on some of the best real estate on Lake Minnetonka.
[idx-listings city=”Orono” minprice=”20000000″ propertytypes=”773″ orderby=”DateAdded” orderdir=”DESC” count=”5″ showlargerphotos=”true”]
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.
Looks like Bill Pohlad, one-third owner of the Minnesota Twins, bought a very expensive home on Lake Minnetonka late last month. The home, while carrying a heafty price tag of $5.2 Million, is actually pretty small when compared to the other huge mansions that sit on the Lake Minnetonka shoreline. It was built in 1951, has 2 bedrooms, 2.5 baths, and just over 2300 square feet.
What makes it so expensive? Well, for one thing, it sits on a 3 acre pennisula jutting out into Lafayette Bay and has 1600 feet of shoreline. Yep, you heard me right – 1600 feet. That means this new home owner has panoramic views like you wouldn’t believe, and pretty much all the privacy he wants.
- 2417 Woodwinds Lane , Minnetonka Beach, MN
Looks like Mr. Pohland can now boast that he “owns his personal private island”.
If you are looking for a waterfront home to buy, maybe you might be interested in purchasing land instead. Many times buyers cannot find the perfect home, so the next best option is to find acreage for sale and build the home of your dreams on it. Below are the most expensive parcels of land for sale on the shores of Lake Minnetonka. If you can’t afford it, well, it’s nice to dream, isn’t it?!
[idx-listings linkid=”136390″ count=”10″ showlargerphotos=”true”]
Looking to buy a luxury home in Minneapolis, St. Paul, Lake Minnetonka, or the Twin Cities metro area? Here are more ideas on what to do before your next home purchase:
