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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:

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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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Wild VioletsIn the life of a real estate agent, most transactions happen without incident. A seller and buyer come together, discuss terms, and viol`a, a house is sold.  (OK, it isn’t exactly as easy as that.)  But every now and then there comes a time when less than pleasant incidents occur, and I am reminded that life continues on through it all.

It has taken a couple of months to write about this as it greatly troubled me at the time it happened. Those who know me, including clients, know my motto is: “All things happen for a reason”. It has always been my belief that we are guided along through our lives, and that each decision we make helps shape our future. Those decisions affect those around us, no matter how minute.

I had a wonderful home listed – old, with a wrap around porch. It was waiting for that one special person who would fall in love with it and bring it back to life. Eventually, we found that buyer. Unfortunately, at the same time they presented their offer, another one came in at the exact same price and terms. Enter negotiations.

As often happens with multiple offers, I had to respond to both buyers asking them to resubmit their highest and best offer. As fortune would have it, the buyer that wanted to restore the home came in with the best offer. I knew both parties were anxiously waiting my phone call, so after the seller informed me of his decision on the “winner”, I immediately called the buyer’s agent to give the good news. To say he was ecstatic is an understatement – I was told how much his clients loved this home and how they were going to restore it to its former glory, and it made me really happy to know I was going to a part of a transaction that was about more than just a house. Having restored old homes in the past, I knew what kind of people these buyers were – passionate and loving.

The seller was out of town until the next day so we had to wait for final signatures before the deal was officially “done”. I spent the evening with my family, happy that this home was going to be loved again. When the phone rang late that evening, I answered it, which is not something I usually do. The person on the other end was the buyer’s agent, and he was clearly upset. Thoughts quickly went through my head – his clients had decided to pull out,  they wanted to change the terms, etc., but what he preceded to tell me had me in utter shock.

Immediately after we spoke earlier that afternoon, he called his clients to give them the good news. The buyers were so excited. They were so excited that Mr. Buyer decided to immediately ride over to the home to sit on the wrap around porch and dream about “his house”. What happened next seems only to happen in movies. On the way to the home, riding his motorcycle, traffic stopped suddenly. He was able to stop in time, but the driver behind him, who was not paying attention, didn’t. Mr. Buyer was hit, and even though he was wearing a helmet, was killed from the crash. The buyer’s agent was calling me from the hospital, as he was a good friend of the buyers and their family. After he finished telling me that Mrs. Buyer would have to pull their offer due to the accident, I told him I understood completely and would inform the seller that night. After I hung up, still stunned, my tears started flowing.  I called the seller, and between sobs, told him what had happened. Needless to say, he was also in utter shock.

As I said before, I believe everything happens for a reason, even if it is bad. I don’t know what the grand plan of life is, or why this happened, but what it does reaffirm is how much each decision we make, no matter how minute, can affect the lives around us. While I know I should not feel guilty about his death, apart of me wonders if the buyer would still be alive had I waited five more minutes before calling his agent. Can life’s path really be changed so quickly? My husband and family tell me it was not my fault, that is was meant to be. I know they are right. But through my eyes, it’s hard to understand how one simple phone call, that brought so much joy one minute, later caused so much heartbreak. You could go crazy trying to wrap your head around it.

So often I hear people dismiss real estate agents as vultures, only caring about making a “quick” commission. They just don’t get it.  We are so much more, and it takes a special kind of person to juggle the many hats real estate agents wear. In this case, I became a grief counselor, not only for my client, but for myself. I felt connected to the buyers through their love, excitement, and passion about restoring an old home. A house was bringing us all together.

So see, real estate isn’t just about a house, it’s about people. And even though we don’t realize it, we are all connected.

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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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 Credit River Township Homes for Sale
One of my favorite luxury neighborhoods is located in Credit River Township, just south of the Twin Cities. I came across Cressview Estates years ago when two of the homes were on the Parade of Homes. Since then, even more luxurious homes have been built in the development, with every home having its own unique style. Home sites range from 2.5 – 13 acres, allowing you all the privacy you could desire. The Legends Golf Course is just down the road, as is the Cleary Lake Golf Course.

Cressview Estate Credit River Township homes for sale

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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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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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Properly Marketing a Home For Sale

Beautiful Flower Beds

Most real estate agents are not good writers, so it should come as no surprise that when you read through real estate listings the descriptions are lack luster. Some agents just don’t care, some just don’t know how to write well, and some agents are so “old school” that they know no other way. Sadly, home owners are the ones hurt because poorly written descriptions fail to attract buyers, so it is extremely important to choose an agent that writes well and takes the time to create a story about your home.

I continualy write on this blog about the importance of good listing photos and how they are the first things buyers look at when searching for a luxury home in the Twin Cities. Photos are the window into the soul of the home, but to make them even better, you must have a description that tells a buyer what they are looking at.

What to Do

  • Accurately describe the home. Calling it the “Best” home in the neighborhood might not be a bad thing, but you better make sure you can back it up with photos and reasons on WHY it is the “Best” home.
  • Use good adjectives that attract buyers like “Beautiful, Lovingly Maintained, Great Landscaping, Spacious”.
  • Include longer descriptions of photos that highlight great features of your home.
  • 

What Not to Do

  • Don’t use negative adjectives to describe your home. Words like “As-Is, Motivated Seller, Small, Needs TLC, Good Value” might not sound all that negative, but they can be a “red flag” to buyers who might think the home is not worth seeing, or needs too much work.
  • Don’t put photos of your listing on the MLS without descriptions. Simple words like “living room” no longer cut it. Buyers want to know exactly what they are looking at and the best way to attract them to your home is to provide ample descriptions.
  • Don’t be lazy. Check up on your Realtor and make sure they are giving your home the marketing it deserves!

(Of course if you pick the right agent from the beginning, you probably won’t have to do much. A great agent will make your listing shine!)

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Looks like Bill Pohlad, one-third owner of the Minnesota Twins, bought a very expensive home on Lake Minnetonka late last month. The home, while carrying a heafty price tag of $5.2 Million, is actually pretty small when compared to the other huge mansions that sit on the Lake Minnetonka shoreline.  It was built in 1951, has 2 bedrooms, 2.5 baths, and just over 2300 square feet.

What makes it so expensive? Well, for one thing, it sits on a 3 acre pennisula jutting out into Lafayette Bay and has 1600 feet of shoreline. Yep, you heard me right – 1600 feet. That means this new home owner has panoramic views like you wouldn’t believe, and pretty much all the privacy he wants.

Lake Minnetonka Home Sells for $5.2 Million
2417 Woodwinds Lane , Minnetonka Beach, MN

Looks like Mr. Pohland can now boast that he “owns his personal private island”.

 

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Contrary to what you might think, when you get the call from your listing agent that a buyer wants to look at your home for sale, the buyer already knows what your home looks like. They have toured it, peeked in the windows, driven by it at night, walked through your bedroom – you name it, they’ve done it. Surprised?

Today’s real estate market is shopped by buyers from the convenience of their living room couch, from their office, or on their lunch break. In fact over 45% of Minnesota buyers, according to a survey conducted by the Minnesota Association of Realtors, found their home on the Internet. Buyers are touring your home before they even make the call, so in this case, don’t you think it best to put your best foot forward from the very beginning?

I recently wrote about the old saying, “You never get a second chance to make a good first impression”, which was in relation to how you have a buyer enter your home. This can also hold true for photography. So many times I see photos like the one below of a multi-million dollar home ( in the photo below, the home is listed for sale at $2.9 Million) where the lazy real estate agent has gone in with a point and shoot camera and done the work themselves. Sadly, high-end buyers are going to pass this home up when they are searching online because it doesn’t grab their attention. Instead of seeing the beautiful architectural and historical details of the home, they see a lop-sided photo of some wood and a partial table.

bad luxury minneapolis home mls photo

Example of a bad MLS photo of home currently for sale in the Twin Cities

 As a seller, you would think you would be pretty upset to find out your agent is marketing your property in this manner. But believe it or not, I find that in most instances where I ask a seller whose home has not sold, to take a look at the photos in MLS, the first thing they say is that they have never seen the photos of their home. What?  A good real estate agent should be showing a seller their marketing pieces, and as a million dollar listing, a good real estate agent should be having a professional photograph the home. Sellers have only one chance to grab a buyers attention, so proper angles and lighting are extremely important to highlight every detail of the listing.

When it comes time to sell your home, please make sure you choose an agent who specializes in luxury home marketing. It’s not about selling your home, it’s about marketing your home. Any agent can try and sell a home, but it takes a true professional to market it correctly.

So, when is your first showing? As soon as the buyer clicks the mouse. Do you want that buyer to click on through to the next home, or stay on yours for a while and enjoy the view?

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