A pattern is emerging that shows a fresh willingness by sellers to put homes on the market and buyers to enter the market. New listings are on the rise, if not in year-over-year comparison, then certainly in week-over-week views, as we bounce well past the new year. A recent article in the Star Tribune confirms that sales in the Twin Cities are the best seen in the last 10 years.
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Below is snippet of my feature in the Star Tribune.
If you think it’s tough to find a buyer for grandma’s silver and the family china, imagine trying to unload an expensive old house with a butler’s pantry and a foyer too fancy for muddy boots and dirty dogs.
For five years, Mark Perrin has been trying to sell one of the most beautiful houses in Minneapolis, a 10,000-square-foot mansion on Mount Curve Avenue. It is now priced at $3.1 million, half his original asking price and below what he paid for it.
“It boggles my mind,” Perrin said. “You get to the point where it just gets silly.”
More homes changed hands in the Twin Cities this year than ever before, and transactions of $1 million and more also set records. But at that exclusive level — the homes most people can only dream about — something is changing: Houses that couldn’t be replicated today are sitting unsold as well-to-do buyers seek technology over turrets and perfection over patina….
…Jennifer Kirby, the agent who has the Perrin listing, said that selling a house in Minneapolis can be challenging because there’s a perception that when you factor in property taxes and lot sizes, you get a better value in the suburbs. Of the 22 houses that have sold for more than $3 million in the Twin Cities so far this year, 19 have been on Lake Minnetonka.
“Even rich people care about their money,” Kirby said. “There are plenty of people who have the money, but we’re competing with Lake Minnetonka.”
It’s amazing to look at the photo I took just last August and see how far stadium construction has come in such a short time. The photos were taken from the same spot. It’s also unbelievable how brave these constructions workers are, especially the ones who walk along the top beams. Gives me the shivers just thinking about it!
August 2014
April 2015
The National Association has just released some statistics about how green home features are affecting buyers decisions when purchasing a home. While commuting costs are a big concern for younger buyers, energy heating and cooling costs are the number one concern as buyers get older. Even though the data paints a broad stroke over the entire nation, it is safe to say that commuting and energy costs rank high in Minnesota, too. Local builders are taking building “green” into account, some becoming GreenStar certified.
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:
- 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.
When it comes to selling your home, honesty is always the best policy, especially when speaking with your agent.
Each time I meet with home owners to discuss their property, I let them know up front that I offer complete honesty, adding that I don’t “sugar coat things”. I’m blatantly honest to the point that I have had a few home owners get mad at me for “insulting” their home. (Some home owners don’t want to face the facts that the home needs a MAJOR cleaning.)
Of course I asked them if they would rather have an agent lie to them to get a listing, or have an agent tell them what they most likely don’t want to hear and help them get the home sold. I have yet to have someone tell me to lie.
But the main point of this story is that after I state my commitment of honesty to them, I notify them that I expect the same level of honesty from them in return. Remember, anything you tell your agent is confidential. So don’t be afraid to tell them a divorce is on the way, or that you just received a notice of foreclosure.
What ever you do, DON’T hide facts that can affect the listing.
I once had a home listed that I was heavily marketing, and putting a ton of time and money into getting it sold.. It wasn’t fun getting a call one day from a buyer’s agent asking how long my clients had been in foreclosure. This was news to me. I had specifically asked the sellers if they were in foreclosure and had been told no. I had also looked into public records, and there was no foreclosure notice posted. Of course the day it became public was the day this agent had seen it, and thus called me because he had an interested client.
When I asked the home owners why they hadn’t told me, they said it was private information and that they were embarrassed to tell me. Unfortunately, their failure at being honest cost us months on the market. Now we had to regroup and talk short sale. Time was running out, and a short sale takes time. Luckily, they had a bank that was on top of things, and we were able to get a short sale approved. Unfortunately, their lack of honesty caused unnecessary stress and loss of time for all involved.
I could go on and on with examples of how past clients have been less than honest with me, and each one has had it affect them negatively – either through more time on the market, less money earned on the sale of their home, or no sale at all. Don’t let this be you! Be HONEST with your agent because they’re there to help get your home sold, no matter what the circumstances.
Thinking of selling your high end home? Want something different that sets your home apart from others on the market and really grabs a buyer’s attention?
Check out the new video released by Jennifer Kirby, Broker/Owner of Kirby Fine Homes, that features one of her luxury listings in Minneapolis. It not only blows the ho-hum virtual tours of still shots used by most agents out of the water, it tells a story about the home and creates an emotional reaction from buyers that could just make them say “This is the ONE!”.
Want your high-end luxury or historic home to be featured next? Give Jennifer a call for a professional marketing consultation and analysis.
On Friday, March 7, 2014, the Minneapolis City Council voted 13-0 to immediately enact a moratorium on residential redevelopment in the Armatage, Fulton, Kenny, Linden Hills, and Lynnhurst neighborhoods. This action was brought by newly elected Ward 13 Councilmember Linea Palmisano, and will last for ONE YEAR!
Highlighted Neighborhoods of Minneapolis Moratorium
This means if you are looking for new construction in these neighborhoods, you can’t build. If you want to sell your home to a developer as a tear down, you can’t because the developer won’t buy it. If you were thinking of adding on an addition to your home, you can’t do it unless the total above ground square footage is less than 1500. Oh, and if you are having a hardship, you have to appeal to the City Council and prove your hardship…if it isn’t good enough for the council, than you will be denied!
Is this stupid??? Ummm, YES!
The official council motion reads:
Motion by Palmisano to introduce an ordinance amending Title 21 of the Minneapolis Code of Ordinances relating to Interim Ordinances, for first reading and referral to the Zoning & Planning Committee (adding a new Chapter 590 providing for a moratorium on the demolition, new construction, or establishment of single and two-family residential dwellings in the R1, R1A, R2, and R2B zoning districts in neighborhoods of Linden Hills, Fulton, Armatage, Kenny, and Lynnhurst, and authorizing the department of Community Planning and Economic Development to conduct a study to inform future development of the area and to propose such amendments to the city’s official controls and other regulatory devices)
The full text of the ordinance can be found here.
Due to the invocation of the city’s Zoning Code Chapter 529, the council was able to make this ordinance effective immediately upon passage.
According to the Minneapolis Association of Realtors, “neither the housing industry nor the public was invited to engage with the city on any issues of concern leading up to this moratorium vote. We are very disappointed that the City moved to put a yearlong ban on housing in these critical Minneapolis neighborhoods. The disregard for constituents, both current and future, saddens and dismays all of us in the housing community. This moratorium will be incredibly damaging the overall housing market, and especially to the property rights of Armatage, Fulton, Kenny, Linden Hills, and Lynnhurst residents”.
A public hearing will be held on Thursday, March 20, 2014 by the City’s Zoning and Planning Committee at 9:30 am. That committee is chaired by Lisa Bender (Ward 10) with Vice-Chair Andrew Johnson (Ward 12).
I strongly suggest that the public attend this public hearing to voice your concern and thoughts on how this will affect the housing industry in these neighborhoods.
If you plan on building a new luxury home in the near future, you might have an extra expense to contend with if Governor Dayton gets his way.
Currently the Minnesota Department of Labor and Industry (DLI) is processing an update to Minnesota’s Building Code. Minnesota’s code is based upon the International Residential Code (IRC), which it amends to reflect local climate and building practices. The DLI’s ongoing process to update the code has featured an intense debate over the inclusion of a fire sprinkler system mandate in Minnesota’s code update. Since 2011, state lawmakers have passed two bills that would have prevented Minnesota from mandating home sprinkler systems. Both times Governor Mark Dayton has vetoed the bills.
In late October the draft building code was released with a home indoor sprinkler system mandate for all newly built homes 4,500 sq ft (including unfinished living space) and above. Notice it includes “unfinished living space”. That means your unfinished basement square footage is included in the numbers. While it is my opinion that it actually might be a good idea to install sprinkler systems in expensive luxury homes, it is NOT a good idea for the government to mandate it. The choice should be left up to the consumer because it’s their pocket book paying for the extra expense.
Don’t get too comfortable if you see a new home in your future under 4,500 square feet. Tom Brace, executive director of the Minnesota State Fire Chiefs Association, has said in a recent article that his ultimate goal is to mandate sprinkler systems in ALL new residential homes.
If you would like to learn more about the push to prevent the mandate, check out the website sponsored by the Twin Cities Builders Association.
Built in 1906, this stunning home was designed for Lawrence Donaldson, who with his brother William, founded the Donaldson Department Store in Minneapolis. The architectural firm of Kees and Colburn was commissioned to design the family’s residence, known for a number of major works in Minneapolis including the Grain Exchange Building, Donaldson’s Office Building, and the Charles H. Harrington Mansion. They later designed the Loring Theater, the Ford Centre, and The Lowry, to name a few.
Constructed mainly of brick, the home is exquisitely detailed with a mixture of several design styles, the most prevalent being Arts & Crafts and Beaux Arts. Subtle design elements throughout the home, linked to Mr. Donaldson’s Scottish heritage, feature the thistle. Probably the most identifiable symbol of all things Scottish, the flower can be found on the facade of the house, the entry columns, above the entry door, on the chimneys, in the living room Tiffany window, and more!
Completed sometime in 1907, additional modifications to the home began in 1908 by expanding the north side – a dining room and a second floor bedroom were enlarged, a sleeping porch was added, and the screened-in porch became an enclosed sun room. The Donaldson’s also hired well known designer John Bradstreet to create a Japanese inspired Sun Parlor, as well as design the Reception Room/Study off the main foyer. In 1916, the carriage house was completed with four large carriage stalls, a second floor apartment, a number of work rooms, and a connecting tunnel.
As happened to many large properties in the Twin Cities as time moved on, the estate was subdivided into six separate lots in 1959 when it was sold by the Donaldson family. After the passing of many decades and multiple owners, the main house was bought by the current owners in 2000, who later that year acquired the original northwest hillside lot extending down to Kenwood Parkway, and in 2001 the carriage house. With three of the six lots reunited, the land totals just over an acre, or 44,792 square feet, representing one of the largest residential properties in Minneapolis.
Restoration of a Gem
Thankfully the new owners had a vision of restoring the home back to its former splendor. Over the last decade, with love and dedication, some of the highest quality craftsman and artisans were employed to bring the home back to life, while incorporating state of the art technology and modern conveniences for today’s busy lifestyle.
Carriage House
The 3 level carriage house includes a fully restored and renovated upper level 2 Bedroom, 2 Bath apartment with kitchen, living room, and dining room and just under 1500 finished square feet. If leased, one parking stall is included with the apartment, and is located on the main level in the property’s terrazzo floored 4 car garage. The space would also be perfect as a nanny or in-law suite. The garage main level also features a workshop and tool room. The lower level, which connects to the main residence via a tunnel includes an exercise room, work shop, half bath, and storage rooms.
Currently Listed For Sale at $5,495,000. More information available at property website www.1712MountCurveAvenue.com .
