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minneapolis

Lake of the Isles in Summer

Downtown Minneapolis from Lake of the Isles, Summer 2013

It’s amazing how many beautiful areas there are in Minneapolis, and in the summer, the Chain of Lakes is one of the hot spots in town. Minnesotans can take a stroll or bike around the three lakes, Lake of the Isles, Lake Calhoun, or Lake Harriet, canoe, paddle board, sail, and more! And all this with the Minneapolis skyline as a backdrop even though it feels like you are NOT in the city.

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2719 Dean Parkway2719 Dean Parkway, Minneapolis

Located one block from Lake of the Isles and over looking Kenilworth Lagoon, 2719 Dean Parkway is unique among properties for sale around the Chain of Lakes. Constructed to ultra high-end specifications by Stonewood Builders in 2012, this home combines spacious open-plan living with stylish comfort and is magnificent for sophisticated entertaining. A huge, attached two-car garage with circle drive is a winter dream, while the front porch and rear deck provide special outdoor options in the warmer months. A heated and cooled workshop is perfect for projects, and the epoxy garage floors makes cleanup a breeze.

Living Room 2719 Dean Parkway

The charming breakfast-nook is wonderful for informal meals, while the formal dining area complements the large, efficient kitchen. An enormous center island offers extra seating and plenty of counter space for cooking up a feast for friends and family. Stainless steel appliances, pull-out pantry, cherry wood cabinets, and coffee station are additional kitchen highlights. And don’t miss the gorgeous American Cherry hardwood floors throughout the main and upper levels!  The living room features floor to ceiling french doors overlooking the lagoon that pour in the natural light, a top of the line gas fireplace, and behind the large wall mirror is a hidden nook for your large flat screen TV. Finishing out the main level is a formal office with coffered wood ceiling and separate kitchen desk.

With 5 bedrooms, 4 bathrooms, 4299 square feet, this home is for sale at $1,315,000. You won’t find a new house with a better location for this price around Lake of the Isles!

For additional information, photos, and floorplans, please visit www.2719DeanParkway.com .

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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 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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If you are searching for a lovely home in Minneapolis to purchase in 2013, I am pretty sure you will be able to find something that fits your budget. Prices of high end homes range greatly depending on location and style. Homes on Lowry Hill fetch more than those along Lake Harriet, and sometimes the style of a home is just as much a factor.

Take a look at the newest homes to hit the market in Minneapolis.

[idx-listings city=”Minneapolis” minprice=”700000″ statuses=”1″ propertytypes=”773″ orderby=”DateAdded” orderdir=”DESC” count=”10″ showlargerphotos=”true”]

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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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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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Contrary to what most might think, many real estate agents aren’t desperate for listings. Yes, there are those out there that will take a listing because they really need it, no matter how overpriced the home will be, but I am not one of those agents.

Recently I turned down an expensive home simply because the home owner and I could not agree on a price. He saw it as a million dollar home, but I knew it was not worth anywhere near his dream number. I did my research, showing him what similar homes in the area had sold for. I even went so far as to take him out into the local marketplace and show him active listings, comparing those million dollar homes to his, hoping the information would sink in that his home in no way compared to those high-end homes. But alas, he still felt his unluxurious home was superior to them. We parted ways that day with a handshake, and I wished him all the best in the sale of his home.

He seemed surprised that I was turning down the listing. “Wouldn’t you like this home to be showcased on your website?”, he asked. I would have liked to have plainly said “Yes, but only if it is priced correctly”, but I was nicer than that.  Here are some reasons why I don’t take overpriced listings:

  • I was asked how much marketing it would take to get his home sold and I flat out told him that no amount of money thrown into marketing the home would make it sell if it was overpriced. See, agents don’t get paid unless a home sells, so we have to put thousands of dollars into photos, brochures, marketing, etc before we see a dime in commission. If the home doesn’t sell, then we are out all those costs. Taking an extremely overpriced listing means that the odds of that home selling are so rare that it is just not worth wasting my hard earned money. Buyers are pretty savvy in today’s tech world and know when a home is overpriced. Looking at it is just a waste of their time.
  • Telling a home owner that their home is worth more than it actual is is a Realtor Code of Ethics violation. Standard of Practice 1-3 of the Code states that “Realtors, in attempting to secure a listing, shall not deliberately mislead the owner as to market value”. I don’t know about you, but I really don’t want to ever be accused of an ethical violation.
  • I believe in being completely honest with home owners, even if I know they are not going to like what I tell them. They might throw me out of the house (never have had it happen), but at least I walk away knowing I gave them legitimate information and that it is truly their problem if they don’t like the data.
  • Beating up a home seller every couple of weeks for a price reduction is not something I like to do. Instead, I choose to educate sellers that pricing their listing correctly from the beginning ensures them that I won’t be calling them and getting on their nerves. While markets do change during a listing period and price reductions do happen, I would rather be able to back my advice up with real market data, then make up some random number just to make a seller happy.
  • When selling a home, many times a home owners number one “enemy” is the real estate appraiser. If he can’t find evidence to support a contract purchase price, then you won’t be selling your home anytime soon. And waiting for a cash buyer isn’t the best strategy.  While many won’t order an appraisal since no lender is involved, million dollar cash buyers are pretty smart and know when a home is overpriced. Don’t pray for a stupid cash buyer – they don’t exist.

Getting back to my recent experience. Another agent ended up taking the listing, which doesn’t surprise me. What does surprise me is the listing price, which is extremely overpriced. Not only will the home never sell at that price, I can’t imagine how the agent justifies wasting everyone’s time. At least I can sit back knowing that I made the right decision in walking away. Let that listing be someone else’s headache. I won’t take part in overpriced listings.

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Over the years, home trends come and go. What was once ultra cool is now outdated. Remember those lovely 70’s orange countertops, or avocado green appliances? Most buyers today would shiver at the sight of them, but a simple kitchen remodel could be a home owners saving grace to successfully selling their home and having the buyers jumping for joy. While renovations can help your home sell faster, don’t expect to get much of that money back.

Each year Remodeling magazine comes out with a Cost vs. Value Report which highlights remodeling projects across the nation and by region, comparing their cost to the value retained upon sale of the home. The Twin Cities is one such region which gets its own specific report. Lucky us!

According to the Minneapolis report for upscale homes, the project topping the charts for greatest % of return is siding replacement with fiber-cement board. The next two top projects are garage door replacement and window replacement (vinyl). In contrast, the top projects for mid-range homes are minor kitchen renovations, front door replacement, and the addition of a deck.

It’s interesting that the areas of the home always thought to be the best renovation projects are not the chart toppers. Kitchen renovations get only 57% of their original cost for high-end homes, and one of the lowest bangs for your buck is a master suite addition. Of course home owners want to “live” in their homes and therefore will always do projects that makes their lives simplier, or more luxurious, not necessarily concentrating on if the project will be a good return on their investment.

If you are planning on a future remodel, and want to get an idea on the resale value of your efforts, take a look at the report. If you want to renovate your home for yourself, then does it really matter what the return on investment it? After all, replacing that roof might only get you 39% of your money back, but I am pretty sure having a dry home would trump any desire to recoup your costs.

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In Minneapolis, the most expensive single family homes are situated around the beautiful area known as the Chain of Lakes just southwest of downtown. Lake of the Isles and Lowry Hill, settled by some of the wealthiest in the city, are home to many of the grandest properties in all the Twin Cities. Currently the most expensive home comes in at $6.5 Million!

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