From the category archives:

St Paul

Luxury Historic Home Sells in Hours on Summit Avenue

Today, the historic home at 318 Summit Avenue in Saint Paul hit the MLS for $2.995 Million with Coldwell Banker , and with-in one hour it was pending. Three hours later it was listed as Sold at a price of $2.1 Million. Needless to say, a real estate deal was already completed before it went active on the market, the owner being a co-listing agent as well.

Below is a post I wrote about the history of this home, comprised of two other blog posts I wrote on my luxury real estate site.

This weeks showcase Historic Home is 318 Summit Ave in Saint Paul.

Built in 1893 by William H. Lightner for a sum of $24,000, the home was designed by the well known architect Cass Gilbert. Gilbert is credited with building a total of 8 homes on the Avenue. The home is a classic and simple representation of the Romanesque style, made famous by H.H. Richardson, in which the home is constructed of large, rough-cut stone. It is quite easy to recognize this architectural style on Summit Avenue in Saint Paul (approximately 12 homes were built between 1883-1893) as each of these home stands out from the common Queen Anne Victorian .

The current owners bought the home in June 2006 for $1,425,000 and are converting the home back to single family residential as it has been a multi-family home for a number of years. It sits on about a half an acre and boasts 7700 square feet, 6 bedrooms, and 8 bathrooms.

I was able to tour the home for one of its last showings with the American Society of Interior Designers (ASID) 2007 Showcase Home Tour. Wow, is the only word to describe the home. Not only did the contractors and owners do a superb job at putting the pieces back together from the apartment building it had been converted to years back, but the designers finished the package with their beautiful array of colors, furniture, and accessories.

The original woodwork and moldings are still intact. Finely carved drip molding accents the staircase railing and the library has window moldings carved with the crest and date the home was built. Original chandeliers hang from the ceilings and it appears the windows are the originals as well. One interesting note is that homes on Summit use to have the kitchens located in the basement, with service delivered via a dumbwaiter. Victorians use to believe that guests would lose their appetite if they smelled the food while it was cooking. So a new kitchen was located in the back of the home where the billiard room use to be.

As you can see from the photos, the home now has some additions that blend in well with the architecture. Two garages were successfully built at the back of the home, with a terrace overlooking the river valley below. Also, the back of the home houses two, three season porches for relaxation and entertainment. Wondering what the dirt basement and previous kitchen became? Well now a bierstein resides there with a bar and wine cellar, as well as a bedroom, bath, and small kitchen.

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Minneapolis Tops List of America’s Safest Metro City

Forbes.com has given the Metro area of Minneapolis and St. Paul the title of America’s Safest City, chosen because it has the lowest rates of violent crime, workplace deaths, fatal crashes and natural disasters. According to the article, Minneapolis and Saint Paul are “also one of America’s best places to live cheaply and offers easy access to some of the most scenic drives in the country“. View the other Metro areas that make the list.

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the Luxury Real Estate Market in Minneapolis and Saint Paul

It appears that the luxury market in Minneapolis and Saint Paul has seen an increase in market action since May, although not what was seen a few years ago. While we have been going up, the Market Action graph tells us it is still a hot buyer’s market…we are currently at 12.75. A score above 30 would transition to a seller’s market. I don’t see us obtaining that level for quite a while. Sorry.

But to give you a better idea of how the Twin Cities luxury market is fairing, I have included some Year-to Date market graphs through the end of August. Sadly, for sellers, the average median luxury sales price for the area has been in a state of decline and fluctuation. Since January of this year, the average price of a luxury home has fallen $60,000, or 7% overall.

At the same time, the number of homes priced above $600,000 has increased over the last year. The spring buying frenzy helped clean out a lot of the winter inventory, but as summer progressed, new listings were brought onto the market. With less buyers purchasing, the inventory has had no where to go but up. Currently the inventory for homes priced over a million dollars has increase 42.8% since last August.
Thankfully, there is some good news. The time it takes for a home to clear the real estate market has declined in the last few months. While I don’t expect it to get much lower since winter is on the way, let’s hope it doesn’t get any worse. The ninety day rolling average for luxury homes is currently about 170 days, roughly six months.

For homes priced above $1 Million, the year to date monthly housing supply, as reported by the Minneapolis Area Association of Realtors is at 40 months! (meaning it will roughly take over three years to sell the current inventory of homes priced above $1 Million.) Yikes!

So what does this all mean for you? If you have a single family home to sell, and the fair market value falls between $500,000-1,000,000, you have a better shot of selling your home in the next 20 months. If you are priced above $ 1 Million, then expect your home to sit on the market for a while…extreme prices will have to wait even longer. Some high end, over the top luxury homes could even wait three years before they attract the right buyer.

Don’t fret though. Please, if you are looking to sell a home, make sure you choose an agent that not only has experience in the luxury home market, but make sure they have a web presence as well. It will take creative marketing to get your home sold, for the days of sticking a home in the MLS to see it sell in a few day are long gone.

P.S. Don’t forget to have professional photographs taken of your luxury home. Ask your agent what they provide. If they take the pictures themselves, please don’t hire them!

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Million Dollar Homes Should have Million Dollar Photos

Ok, so I would hope people would know by now that one of my biggest pet peeves is real estate photographs. It really drives me crazy with all the terrible photos I see constantly in the MLS database. I can understand terrible photos for $100,000 homes (but even those tilted photos get under my skin), but when it comes to terrible photographed homes priced in the million dollar range…I just don’t get it.

Homeowners – When you hire real estate agents to sell your home, do the agents even tell you about their marketing plan? Better yet, do you even ask? Do you ask them how they will be photographing the home? Do you ask to see the end result?
Why does this matter? Because photos sell a home. Let me tell you something…agents have NO excuse for not paying for a professionally photographer to come into your luxury home. If you are letting them get away with walking into your home with their point and shoot camera, then there is probably a really good reason your home is not selling. Your photographs stink!
Agents – Who do you think you are? Professional is NOT the word that comes to my mind. If you are listing a high-end home, then you better be shelling out the dollars for high-end photos. You are doing a huge disservice to your client and not giving them the proper exposure they need for an expensive home. Either spend the money for a professional, or leave the luxury home market.

In this post you will notice the photos I have used. All were taken from active homes in the MLS system, high end homes currently listed for more than $2.4 Million. See the problem?
  • the first photo is pretty dark and not too inviting. A professionally photographer would have lit up this room with his equipment, lit the fireplace, and created a photograph that presented a cozy living room space.
  • the second photo is always the main feature of the home which buyers want to see – the kitchen. This tilted photo makes the room look narrow and small, most likely scaring buyers away. If a wide angle lens was used and the room professionally lit, then the kitchen would look like a gourmet space, without having an ugly flash bouncing off the far cabinet.
  • the last photo, just makes you want to jump in that tub…I don’t think so. The room is dark, and I just “love” the shadow of the agents head taking up a quarter of the photo.

So hopefully, you can now see my points. Professional photography MUST be used when listing an expensive home. I see well known agents in the Twin Cities shooting million dollar homes themselves, and I am amazed that they keep getting hired. Sellers really need to understand that to attract buyers who can afford luxury real estate, you need to present the home as a luxury property. If your home photos stink, then maybe you should think about hiring another agent, one that specializes in selling luxury homes.

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Yes Virginia, There Really are Multiple Offers

I know many of you won’t believe this, but the dirty little secret that the local media isn’t reporting is that homes in the lower price range are flying off the racks. Yep…just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don’t believe me, do you?
Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their “highest and best” offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you’ll be just like those brides you see on television…pushing and yelling your way to that perfect find.

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F is for Photo – Church of Saint Agnes

Built in 1887 and located in Frogtown of Saint Paul, the church steeple
is literally a beacon for the surrounding neighborhood.

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Being All Things to All People

The one thing I have learned from my time in real estate is that to be a true professional, you cannot be all things to all people. What I mean is that I truly believe that in order to be successful and give your clients your best, you have to be a specialist in a certain market area. Now an agent’s market area can literally be an area/city, or it can be a type of real estate. I know agents who specialize in Saint Paul, downtown Minneapolis condos, South of the River real estate, etc. But there are those of us that approach things a little differently.

As you can probably tell, the niche markets I have chosen consist of luxury real estate and historic homes, including waterfront/lakefront properties. I don’t really concentrate by city, instead choosing to specialize in properties on various lakes, and historic home districts in the Twin Cities. By limiting the markets I concentrate on, I am able to keep better track of market trends and homes for sale. If I was like most agents out there, who do anything they can get their hands on, my head would be spinning.

For sellers and buyers, it is important to select an agent who specializes in what you are looking for, especially if you are in the market for a home that is not an average home. For historic homes, go with an agent that knows about historic home construction and the costs that come along with an older home. For expensive homes, go with an agent that understands the luxury market, the types of loans that go with it, and the marketing funds to support such a listing. There are many agents who would love to list high end homes, but just don’t have the ability to sustain them.

While I do list and sell homes out side my niche, I don’t actively seek them out. People find me from my website, blogs, and past clients, and ask me to help them out. I’m all for selling homes, no matter the type, but choose to concentrate overall on a type of real estate. Next time you are looking for an agent, don’t forget to find out if that agent has a real estate speciality.

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F is for Photo – Irvine Park in Saint Paul

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Winter Carnival in Saint Paul on Ice

I had some free time in Saint Paul today and thought I would stop by Rice Park to see the ice sculptures done a few days ago in celebration of the Winter Carnival in Saint Paul.

It was really, really cold and my hands were hurting after a couple of minutes. Kind of hard to take a photo with heavy gloves on. I can only imagine how cold the artists became while carving this beautiful pieces of art.

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The Saint Paul Saints Baseball Team

A great way to enjoy your summer is to catch a Saint Paul Saints game. Last night we attended a game and the kids just loved it. Seating is good no matter where you sit, and there is plenty of food options to please any appetite. You will also get to enjoy a game outside, as all baseball games should be played, and not have to sit in a loud dome like with the Twins. If your kids love trains, they can catch a few as they go past the outfield in the middle of the game.

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