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.”
Only fools rush into this major DIY undertaking.
Painted cabinets are ruling Pinterest these days, since intrepid DIYers love the idea of updating their kitchens with only a few coats of a new color. It seems like a no-brainer project, but this undertaking actually has many potential pitfalls. Avoid these blunders to end up with cabinets you can’t wait to show off:
Read More at 11 Big Mistakes You Make Painting Cabinets
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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.
Driving north on Cedar a month ago I looked up at the property overlooking the river valley and noticed a huge For Sale sign in the back yard. My heart sank a little, wondering if this year would be the last year to witness the beautiful oak tree that sits in the front yard being lit up for all to see. It really is stunning to be driving up or down Cedar at night and see the huge tree shining like a beacon. Hopefully the new owners will love the tree as much as the current ones and keep the tradition alive. AND hopefully, a developer does not buy the property and tear it all down.
In an interview with WCCO, the owners said:
“The potential buyer will also inherit 39,000 Christmas lights wrapped around one tree, but the promise to keep it lit can’t be included in a purchase agreement.
Hopefully, I can talk them into it, even if I have to come and be their assistant or apprentice for the first year or so to get the lights going,” Bob said. “I hope they do it.”
So while the fate of the tree hasn’t come to light, for this year, at the very least, the oak will still illuminate the holiday season.
“I really believe in their heart that part of their decision for buying it would be what we’ve done all these years” .
Here’s a story from 2009 about the tree and the people who come to visit it.
Traveling to Denver to attend a luxury real estate conference is a highlight of my year. It’s a good way to market my listings to agents from across the country and meet people to send clients to when they move out of the Twin Cities.
Leaders in Luxury is an invite only event for the top luxury real estate agents in the nation, and I had the privilege of being invited again this year.
The chandelier shown above is located in the Ritz Carlton – Denver and was created by glass artist Dale Chihuly. It is an amazing work of art!
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.
