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St Paul

What to do Before Buying a Luxury Home in the Twin Cities? Part 2

Luxury home Kenwood Parkway MinneapolisLooking 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:

  • Look beyond your Target Price – You might be looking for a home in the $5 million range, but if you are looking in an area other than where you currently live, you need to find an experienced luxury agent to help you understand market value. Find out what $1 Million, 3 Million, or even $10 million will get you.
  • Don’t Get Sticker Shock – Prime locations command prime dollars. Expect to pay higher than normal prices for waterfront properties, mountain views, and prestigious areas.
  • Communication is Key – real estate agents cannot read your mind, no matter how good they are. It is extremely important to be honest about your goals and your finances in order to have a great experience. Most luxury agents understand the need for confidentiality and will be more than happy to work with you.
  • Put Trust in Your Agent – Realtors are professionals, so trust that your agent understands what you want (again, communicate) and you’ll be viewing homes that meet your needs. If at anytime you feel uncomfortable, do not feel guilty for seeking out a new agent.
  • Don’t be Confidential about your Assets – Be prepared to show your ability to purchase, no matter who you are. You might be well known where you live, but your new city banker won’t. Have your bankers talk to each other to verify there are funds available to close and to also source the origination of those funds. The seller might also ask for a letter of verification from your lender for their peace of mind.
  • Don’t forget Future Resale Value – It might not be your top priority, but someday you will probably want to sell the home you are purchasing. Check the appreciation rate for the neighborhood and take it into consideration when buying.
  • Think about your Offer – Price is usually the first item a seller looks at when an offer is written on their home, but an offer can also consist of contingencies about inspections, finances, closing dates etc. Remember to make your offer based on of all terms and the condition of the home. If need be, have your Realtor write up an explanation of your offer terms to include with the contract. Sometimes explaining your situation or reason to the seller will give you a “human factor” and most times get your offer accepted.
  • Don’t get Emotional about the Seller’s Personal Property – if there is something you like in their home and would like to ask for it, do not write it in the contract. Instead, draw up a separate agreement and ask nicely for the item(s). If they say no, let it go. Too many deals fall through because of household appliances or a chandelier. If they promise something is in included, get it in writing!
  • Get to know the Paper Work – Ask your agent for copies of all documents and disclosures and review them before you make an offer. Mark any areas where you have questions. Every state is different regarding the types of disclosures you need, and what you are use to in one state, most likely will differ in another. For example, in Florida, there is a “Termite” Disclosure which also covers mold, wood rot, and powder post beetles, but if you want to buy in Minnesota, they have no such disclosure.

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Como Zoo and Conservatory Holiday Flower Show

Looking for something to do this holiday? Need a little bit of color pick-me-up? Visit the Como Conservatory for a great Holiday display going on until January 4, 2015. Makes for some great photos, too!

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Most Expensive Homes in St. Paul

Most Expensive Homes in the St. Paul Area

It’s always fun to see what the Most Expensive Homes For Sale look like, where they are located, and what price they are asking, so I thought I would update my readers and let them take a peak at these amazing homes, this time in St. Paul. Most are historic homes with some amazing architectural features that just can’t be replicated today.

View the rest of these luxury homes below:

[idx-listings linkid=”371989″ count=”10″ showlargerphotos=”true”]

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What to do Before Buying a Luxury Home in the Twin Cities, Part 1

Luxury Home Lake HarrietHere 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!

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1712 Mount Curve Ave

Most Expensive Homes in Minnesota

It’s always fun to see what the Most Expensive Homes for sale in Minnesota look like, where they are located, and what price they are asking, so I thought I would update my readers and let them take a peak at these amazing homes.

  • Everyone knows the Pillsbury Mansion on Lake Minnetonka is for sale and has been on the market for some time. Originally priced at  $53.5 Million, and now at $24 Million, it is to be expected that it might take awhile to find that perfect buyer. It is owned by Former Minnesota Vikings co-owner James Jundt who bought the property in 1992.
  • If you are looking for a great buy, the mansion in Dellwood, owned by Dwight Opperman (listed by Forbes as one of the 400 richest Americans), has recently had its asking price cut in half, from $12 Million to $6 Million.
  • Another home that has been recently reduced in price is the 78 acre estate of former strip club owner Larry Kladek in Inver Grove Heights.
  • My favorite is of course my listing in Minneapolis, The Donaldson Mansion on Mount Curve Avenue. One of the most beautifully restored historic homes I have ever seen!

View the rest of these luxury homes below:

[idx-listings linkid=”324191″ count=”10″ showlargerphotos=”true”]

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State of the Luxury Home Market – Twin Cities

State of the Twin Cities Luxury Home Market

I thought it would be interesting to compare the current Spring real estate market for luxury homes in the Twin Cities to the last couple of years, and see if things have improved at all. The news is constantly stating that the Minnesota real estate market is roaring back to life, what with our shortage of inventory and less buyer fear, but can the same be said about the luxury market?

Days on the Market

Back in 2010, the rug was pulled out from under the luxury real estate market and it seemed to take forever for a home to sell. The average Days on the Market, what we real estate agents call DOM, was 212 – meaning that is took on average 212 days for a luxury home to sell.

Days on the Market 2010 Twin Cities Luxury Homes Days on the Market 2010

Now, look at March 2012 and the numbers get better. The average number of days drops to 170!

Day on Market Luxury Homes Twin Cities Spring 2012 Days on the Market 2012

For April 2013, the number drops to 148!

Luxury Home Days on the Market 2013 Twin Cities Days on the Market 2013

Inventory

Inventory is often one of the deciding factors on how a real estate market will perform. Too much inventory and few buyers makes for a terrible market. In 2010, sellers were scared and wanted to get out of their expensive homes. Buyers however were very worried and became hesitant if not completely shut off from buying a new home. No other inventory in the Twin Cities felt this more than the luxury home market, starting at about 685 homes for sale in Spring 2010 and roaring to 925 in the Fall.

Minneapolis St Paul Luxury Home Market Inventory 2010 Inventory 2010

Spring 2011 started off with 653 homes on the market and increased to around 836 by September, however when Spring 2012 hit, less homes were being offered for sale – coming in at around 620.

Twin Cities Luxury Home Inventory Spring 2012 Inventory 2012

Once Fall 2012 came around, only 708  homes were for sale. That’s a 15.3% decrease from 2011!  Of course now that Spring 2013 is here, I know the market inventory is low simply by trying to find homes my clients might like. We can’t find any! That’s because there are only currently about 430 luxury homes on the market. When compared to 2010, we quickly see that the Twin Cities Spring luxury inventory has decreased by 37%!

Twin Cities Luxury Real Estate Inventory Spring2013 Inventory 2013

Average Price

Starting in late 2009, the luxury home market started to be affected by the economy, and prices started a slow decline over the next year. By August 2010, average prices began a rapid decline making 2011 a terrible year to sell an upper bracket home in the Twin Cities. Homes that once held a value well over $1 Million, were now selling for $700-800K. Foreclosures and short sales became more prevalent, as home owners found themselves underwater and unable to afford their castles.

Twin Cities Luxury Home Average Price 2010 Average Price 2010

By Spring 2012, home values were at their lowest, only bringing in an average of around $675,000, but every cloud has a silver lining. Over the last year, the average price of a luxury home has been steadily increasing, and we are now back at 2009 pricing.

Twin Cities Luxury Homes Average Price 2013

What Does It All Mean?

Wow, what a difference a few years make! While the numbers look to tell a great story, it is still a cautious time. Home owners are not listing as many homes, thus giving buyers less choices. This helps prop up the market with homes selling quicker, but buyers are still afraid of paying too much for a home. Most of the buyers I encounter refuse to pay list price, and they also want to see the price of similar homes that have sold in the area in order to justify their offers.

The most interesting information in the report, in my opinion, is not the average price number, but the graph direction in general. Looking at 2010, the graph line is going down. But take a look at what has been happening since May 2012. The graph direction is going up, as if it is trying to claw its way out of the abyss. Let’s pray it keeps going up!

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Three Meadows Luxury Home For Sale in Mendota Heights

Mendota Heights Luxury Home for Sale

614 Hidden Creek Trail, Mendota Heights, MN

 

It is hard to believe a home of this stature can be so close to Minneapolis and St. Paul, major Interstates, and the MSP International Airport, but feel like it resides outside the Metro area. The home owners combined two lots into one to create a 5+ acre nature retreat that is amazingly quiet, secluded, and pristine…not to mention frequented by deer, ducks, turkeys, many varieties of birds, and more! Christened as “Three Meadows” for the meadows stretching on and behind the property, a favorite part of the owner’s day is walking along a nature trail that winds through the trees and land for a “good mile”.

As soon as you step into this one of a kind home, you will instantly see the quality in craftsmanship. With over 13,000 heated square feet, no detail was overlooked in its design. Built over a period of 18 months, the home was crafted by Mihm Custom Homes and finished in 2005. The three level layout has 6 bedrooms, 7 baths, 2 half baths, a main floor laundry, and another small laundry in the lower level.

Luxury Home Theater 614 Hidden Creek Trail Mendota Heights
To view additional photos, documents, floorplans, please visit the property website at www.614HiddenCreekTrail.com

[idx-listing mlsnumber=”4337196″]

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Fall Home Tours Abound in the Twin Cities

You may not be in the market for a new home, but that doesn’t mean you can’t enjoy looking at other people’s homes and possibly finding your “dream” home. Of course your dream home will most likely be out of your price range, but hey, that’s why it’s called a dream home!

  • Fall Parade of Homes – while I personally feel there should only be one Parade Tour each year, instead of two, for the next couple of weekends you can peruse through the model homes of local builders. The Tour runs from September 8th-30th and is open Thursday-Sunday from Noon-6pm. The last weekend also features the Remodelers Showcase which is open Friday 1-7pm and Sat-Sun from Noon-6pm.
  • Homes by Architects Tour – The AIA Minnesota is putting on its 5th Architects Home Tour featuring 16 new and remodeled homes located throughout the Twin Cities, greater Minnesota and western Wisconsin, all designed by registered architect members of the American Institute of Architects Minnesota. Some of these homes are not in the Metro, so if you want to see a specific home, expect a drive and plan your day accordingly. The tour runs September 22-23,  10am-5pm.
  • Summit Hill Association House Tour – if you love historic homes, than don’t miss this tour in St. Paul. It always has amazing homes featured that you just don’t get to see very often and is only on for one day, September 9th, Noon-6pm.

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Most Recent High-end Homes for Sale in Saint Paul

For a real estate agent, seeing what is new on the market each day can be quite exciting. You just never know what is going up for sale! Here is a list of the most recent homes above $500,000 to hit the St. Paul market.

If you are looking in the St. Paul area for a home, or thinking of selling your current residence, please contact me.

[idx-listings city=”St. Paul” minprice=”500000″ propertytypes=”773″ orderby=”DateAdded” orderdir=”DESC” count=”10″ showlargerphotos=”true”]

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Twin Cities Luxury Home Market Update Spring 2012

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)

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