The hot townhouse market continues...just listed this 3 bedroom 2 bath, 3 level townhome in the Landings at Summerfield. One of the only units in the complex that has finished space in the lower level instead of just slab on grade. This is a Bruggeman built complex in a super convenient location that has access within minutes to both 35E (St. Paul) and 35W(Minneapolis).
Contact me for additional information or to set up a showing.
Just listed for $625,000, actually $620k and then increased right away to $625k. Large house on 5 acres in the rural part of Eastern Hugo.
Pros: 5 acre lot on Oneka Lake, which is a natural environment lake classification from the DNR. A lot of flat, usable land on the lot. Large, heated pole barn with concrete pad. A lot of space, 5 bedrooms, 4 bathrooms and over 4700 finished square feet on two levels. There is a great, large deck on the second level of the home that has views of the lake.
Cons: The house is large, but lacks the detailed finishing that one might expect at this price point. Very clean and well maintained but the level of finish is very basic. The floor plan is a little awkward and does have a warm inviting feel. The upper level kitchen is in the front of the house, cut off from the views of the lake and the backyard which is the strength of the house. However, the house is a good distance away from the lake so the views of the lake are somewhat distant and it doesn't feel like a lake home, more like a home with a lake lot. Definitely for the unique buyer with the full kitchen and two bedrooms and living area downstairs.
Overall: It has a lot of space and it's a good lot on Oneka Lake. The lot doesn't have a ton of charm but is very usable depending on the buyers needs. Its not the best set up for horses being only 5 acres but the lot is super flat and all the land is usable so it could work. I didn't get inside the pole barn so I am not sure about the set up inside. The level of finish on the interior of the house is going to be a tough sell at this price point. A lot of space and if it fits the multi-generational buyer that wants to live together maybe it makes sense, otherwise I think the price is expensive for what you get here.
House review of 15626 Enfield which is currently on the market for $444,900.
Very nice home in a popular family neighborhood. Built in 2005 and located in the Heritage Ponds neighborhood of Hugo. This house has been on the market currently for 18 days. It has 5 bedrooms, including 4 on the upper level with a master bath and 3 finished levels.
Here is a link to the listing:
My opinion is that while its a great house with a lot to offer, it is expensive for the neighborhood. These homes are still competing with some of the newer construction out there is generally available in the mid $400k’s and this home has an older kitchen with oak cabinets and a little bit older floor plan. However, its a super lot and location, with no homes immediately behind it and it has a great location on the street overlooking the park.
It has some good quality and upgrades that make it a better value than the DR Horton homes that are selling for upper $300ks in Clearwater Cove but there are still a lot of homes in the immediate area for upper $300ks that have similar properties. There are also a few houses for sale in Victor Gardens south of Frenchman’s road that are in the low $400ks that have better upgrades and similar size and floor plan. A very nice finished walk out basement with a gas fireplace is a nice amenity but I don’t know if its enough to get the house sold. I think the market is heading in this direction and price, but we may still be a season away for this house to get the mid $400k’s on price.
Read MoreProbably the number one question I am asked from Sellers is "what should I update on my house in preparing to sell? If you go by the remodeling guide's latest evaluation of cost vs the return on investment of remodeling projects, it isn't much.
http://www.remodeling.hw.net/cost-vs-value/2018/
There aren't any projects listed that actually give you over a 100% return on your invested dollars, so if that is the case, there isn't a major project that a seller should do. However, these are talking about sizable renovation projects. I would always recommend spending some time and money upgrading curb appeal and having fresh flooring and paint, this maybe somewhat labor intensive but it is well worth the investment. Concentrating on modern flooring and fresh paint is highly recommended and then the next area that would give you a return on your dollars would be updating kitchen and baths. This doesn't mean doing a complete facelift but by spending a few dollars on updating some dated fixtures can have a big payoff.
In the past issues of this remodeling report there was only one project that justified over a 100% return on your investment, and that was putting in a new front entry door. Coming in second was usually high end garage doors. So, the front entry is a great area to focus on making sure that this area is in great shape and really wows a buyer.
I usually recommend on the smaller scale items that if a buyer is going to need to replace something when they move in, a seller should consider replacing it because they might as well get the value out of it while the property is on the market. An example would be worn carpet. If the carpet is so worn that a buyer would immediately replace the carpet, the seller should put in new carpet. If the buyer may keep the carpet because its only a couple years old, then probably a carpet clean would be sufficient. It is amazing what brand new carpet can do to refresh a home.
It also depends on where a home is in relation to the rest of the neighborhood. If a house is already priced at the low end of the neighborhood, then it might make sense to not do any upgrades and just sell at the low end of price because a buyer will still be able to gain equity by doing some of the upgrades themselves and to their own tastes. If a house is priced at the high end of a neighborhood then there might be some upgrades that will need to be done to justify the top dollar.
But in general, stay away from the more extensive remodel upgrades and just do some minor refreshing to the home. Paint as much as you can with neutral colors, new carpet, fresh mulch and landscaping and fix any deferred maintenance items is probably a safe plan. Maybe some new light and bath fixtures and a new appliance in the kitchen to replace the one that is 20 years old.
Adorable 2 bedroom townhouse in quiet association, super location, well maintained.
I just had a buyer purchase a lot on Big Marine Lake. Pricey for sure with an almost 2 acre lot going for $475k. With an investment like that you wouldn't want to find out that either the lot isn't buildable or that you need to spend an extra $40k to put steel pilings in the ground to add support to the foundation because the soils are bad.
What you should do to protect yourself is write in a contingency to the purchase agreement to have an acceptable soil test done. This is different from a perk test that tests the soil for a future septic system, which you should do also. This test goes deeper into the soil than the 3 foot perk test and looks for how good the soil is to build a structure. The concerns are clay soils or a high water table or even soils that are hazardous because in the past the site has been a dump site. The cost is high for this test, over $1000 usually which covers the big truck coming out (see picture) and taking multiple soil readings about 10 feet deep. But the downside of having bad soil is a much more expensive mistake. If you find out that the soil is bad or that it will take extra costs to build on a site with less than perfect soil, if you have written in this contingency to the purchase agreement, then there is a good chance that you can negotiate the price if you still want to move forward with the purchase.
Often in a more urban area than the rural lot on Big Marine, if there is a lot that hasn't been built on in the past, there is a reason for that. Many developers left unbuildable lots and then 40 or 50 years go buy and someone wants to build on a lot in a desirable neighborhood only to find out after purchase that this lot was the fill site for the development or that this was the swampy spot that has since dried up a bit. There are some signs that you can look for that will tell you if the soil is good. Obvious signs like a low lot, or wet soils give indications that the soil is wet. Large trees on the site can tell you that the soil is good because if it can support the trees, it can support a house.
In addition to the soil test you should also perform a perk test. This test runs around $600 and verifies that the site can have a septic system installed in the future. Obviously if there is a City Sewer connection at the street this isn't necessary. But if there isn't you need to make sure that you can install a septic system on site. The soil tester will give you a log of soil borings and sketch a system on a map that shows where there is sufficient room for a septic system. When you decide to build you then take this information to a septic designer who will then draw out the specs of the actual system.
That is some big expenses for sure, but its better to protect yourself and your investment on the front end than to find out afterwards and realize a more costly mistake.
Who would have thought a few years ago but the condo market in Hugo is red hot! I just had a buyer looking for a condo basically in the Waters Edge condo development which is just North of Frenchmans Road in Hugo. Its a newer development that built in the boom years. As the Great Recession hit and the housing market crashed condo developments like this were some of the hardest hit areas. Developers had over built condo because if they could sell them they allowed the developer to squeeze the maximum number of units into a certain area.
So, when the market crashed there was a tremendous oversupply of condos and an overhang of new construction condos that were fire-saled by banks and developers that didn't go under. Which made existing homeowners that had just bought deeply underwater and in a position that they couldn't sell their property unless they wanted to take a huge loss.
Add to the fact that in the Waters Edge association there was pending litigation against the builder which made conventional financing almost impossible to get for buyers. This further depreciated the prices that these condos could sell for.
Fast forward a couple years... the litigation is over and conventional financing is available again and all of sudden these condos are a hot commodity! For example, I just had a buyer that was looking to buy a condo to rent out to her daughter in Hugo. She liked the location of the Waters Edge condos and we started looking. Every condo we looked at was sold within a day or two. When she was ready to put an offer in, we found a 3 bedroom 3 bath condo on the market for $199k. We knew the market was hot and we put in an all cash offer (nice buyer:) and removed not only the inspection contingency but also the review of the condo document contingency because we were familiar with the rules and bylaws and financials of the association. And we went $10k over list price. We thought we were a shoe in for getting the offer and guess what, we didn't get it.
We kept looking and found another condo that the buyer liked in the same neighborhood and basically put in the same offer in another multiple offer situation and got our offer accepted this time. So, the moral of the story is that the condo market is hot! An amazing turn of events, prices are rising and multiple offers are abundant. Hugo is hot! Its a great, growing, family friendly area with good schools.
If you are a condo buyer, beware there is some competiton out there and if you are thinking of selling your condo, it is probably a good time.
Welcome to 4477 Cosette Lane. This home is a fabulous walkout rambler in the highly desirable Victor Gardens neighborhood of Hugo. 4 bedrooms, with a master on the main level and 3 bedrooms on the lower level. Very well maintained from the original owner of this custom built home built by American Classic Builders.
From Inman News:
$72.5 billion in deals would put the fast growing franchise on top, but Re/Max quarterly results remain delayed and elusive
JAN 31
Long the largest real estate franchise by number of agents globally, Keller Williams on Wednesday claimed it has become the leader by sales volume in the United States, too, tallying $72.5 billion in deals during a record-breaking fourth quarter. If that's true, that means Keller Williams has overtaken Re/Max for sales volume in dollars--long seen as the market leader. However, the claim came without official figures from Re/Max, to compare to, as the latter company has not released its fourth quarter 2017 earnings, and it's third quarter earnings of that year also remain delayed.
Low appraisals continue to be a concern for home sellers. Three of the last four properties I have sold have had an issue of a low appraisal. Seems like the market is moving a little too fast for the appraisers in the area.
What this means for sellers? Appraisals need to be a major concern when accepting an offer, especially multiple offers. Be very wary of accepting an offer over list price when it has buyer paid closing costs rolled into the offer. For example, if a house is listed for $350,000 and a buyer writes an offer for $360,000 with the seller paying $10,000 of the buyer's closing costs. That is a $350,000 offer that would be essentially list price. A seller may choose to accept this offer over another offer for $345,000. What happens when the property appraises for $350,000? That is essentially list price again. The buyer wants the seller to still pay for the $10,000 closing costs and then the offer would be a $340,000 offer. Not a good deal for the seller.
There are several ways to handle appraisals. Don't accept any offers where the seller is paying the buyer's closing costs because basically you are inflating the market price. Or write language into the purchase agreement that states how the situation would be handled if the appraisal comes in less than the purchase price.
However a seller decides to handle a low appraisal, in this appreciating market where appraisers are looking backwards at sale prices, instead of forward at pending and future sales, appraisals will continue to be an issue and something to be prepared for.
Fabulous, newly constructed two story in Mahtomedi School District located on 5 acres with tree top views of Sunset Lake. New everything, private lot, walk out lower level, great patio and deck, 3 car garage, 4 bedrooms with a master suite. Great home!!
As we look back at the almost year end statistics for Hugo, we see some very good indicators.
Average and median sales prices are rising and 63 days on the market to sell is a very healthy number. The amazing indicator is the month's supply of inventory number of 2.0 months for November. A balanced market is considered to be 4-6 months of inventory, so right now it is a seller’s market which leads to rising prices and lower market times. Hugo has weathered most of the building spurt of new construction and as the last of the current new builds get absorbed, prices across all price points should begin to rise, not just the lower end. Good neighborhoods, a growing, healthy housing supply, good schools, should be a healthy housing market for the future. Here’s to a good spring market!
Well, it's the time of the year when winter rolls into Minnesota and normal life becomes more difficult. Cars need to be parked inside, going outside for 5 minutes becomes a challenge, and getting kids out the door to go to school takes an extra 15 minutes getting on snow pants, mittens, scarves, and face masks. So, when it comes to looking at houses, the market in the Twin Cities really slows down. Who wants to walk around a house and look at a back yard when there is two feet of snow on the ground and the temperature is 10 below.
That's all true but the housing market doesn't come to a stop. Every year there are houses that get listed Christmas week. Every year there are buyers that write purchase agreements the day after New Years. I have a buyer right now that has been looking for a house in the Mahtomedi School District. They are going to jump as soon as a house somewhat fits their needs. There is very little inventory out there to choose from. and this is an advantage for a seller to list in this market. There are certainly less buyers out there willing to brave the elements to find a home but there are certainly less sellers to compete with as well.
The challenge can be that if the house doesn't sell right away, that it takes more market time for the next buyer to come around. If there are 10 buyers in the spring coming to market every week, there might be 1 buyer beginning their search in November.
It might not be a bad idea to do a market test in the late fall or early winter. Put the house on the market for 3 weeks. If it sells, great. If it doesn't pull it off the market right away. Buyers will not know what the situation was. They might think that a situation came up where you had to pull the house off the market or that you decided not to sell. There is no harm in a short test like this. The only downside would be if you left the house on the market from December to April, then the house becomes "shop worn" as you enter the peak of the market. If you listed for 3 weeks in December and then pulled off the market for two months, your listing would come back on the market fresh, just as if you never "tested" the market in the winter.
Every situation is different, and testing the market in the winter may not be the best strategy for your particular house, but if the situation is right and it fits into your plans, it may be a great time to sell.
Large 40 acre parcel available in Eastern Hugo. Gently rolling hills, open pasture and small pond with a great homesite for a walk out.
The off market sales continue.. Many of the premium properties have been selling before they ever hit the market. I sold this classic fourplex located close to Lake Calhoun to an off market buyer for $640,000. It was a very solid brick building with all two bedroom units. Rents were around $1475 per month and the owner paid utilities.
Just listed, the lowest priced duplex in Southwest at $265k. Solid, clean up and down duplex with a 2+ bedroom unit on the main floor with classic detailing - hardwood floors, built ins and wood fireplace. Upstairs is a very clean and bright 1 bedroom unit with a separate entrance. Nice location in quickly appreciating Kingfield. Rents are $1300 for the lower unit and $900 for the upper unit.
Beware of the FHA investor buyer....
Ok, so you sell your multi family property to a buyer on a FHA loan. Your property is in very good shape, no peeling paint or cracked floor boards. Shouldn't be a big deal, right? Not so fast. Make sure your buyer is not an owner of other investment property, because if they are it could spell trouble.
The FHA program is mainly designed by the government to encourage home ownership of an owner occupant and a first time home buyer. They allow the program with low down payments, about 3.65%, of the purchase price, for multi-family properties, because if an owner occupant wants to buy a duplex or a fourplex, the government is ok with that. They even increase the loan limits to over $500,000 for a fourplex. This is all great, the problem comes in when a buyer owns other investment properties and then they decide they want to use an FHA loan to purchase a multi-family property and owner occupy it. The government thinks that the buyer is using this low down payment loan to add to their investment portfolio. Sure, the government would require that the buyer lives in the property for at least one year after the purchase but this type of buyer is really not the type of buyer the government is trying to help. There are other restrictions that could make the loan fall through. One such restriction is that the buyer cannot own other properties in the immediate area. If the buyer owns another duplex 3 blocks away, which is often the case, and then wants to move into another duplex and owner occupy with a FHA loan, the loan will be turned down. And often, unless the loan officer is really on their game, the seller won't find this out until very late in the transaction. The rules are extremely tight if the buyer is buying a fourplex. The underwriters will want to know why the buyer wants to live in a fourplex and into a unit which is usually smaller than the unit they are currently living in. If the buyer is moving into a duplex, it can be easier but be prepared to have to show a lot of justification for why the buyer is moving into this property from their current situation and make sure the loan officer really knows what they are doing. It isn't enough to have the buyer actually want to owner occupy the property. You will want to have a loan commitment from the buyer well in advance of making any closing preparations and maybe best to stay away from FHA loans if the buyer is already an investor.
Where are all the sellers? The last couple of years there have not been many houses on the market but I don't think I have ever seen it like this. And just from my sense of the market, I don't have the feeling that there are many listings coming any time soon. This could be a tough year for buyers trying to find a home.
I am not sure why there isn't more inventory. Prices have been rising so there should be more sellers willing and able to sell their homes than anytime in the past 10 years. A big part of the problem I think is that a seller can sell but they aren't able to find a suitable house to buy. This is a conundrum that makes the problem worse. Sellers cant buy so they don't sell, which means less to buy, which means less to sell.... you get the point. If you look at the current inventory levels in the graph below, the inventory levels for previously owned homes (not new) the level is 1.8 months of inventory. That's incredibly low. A balanced market is 4-6 months of inventory, so we are not even close. Sure, a little bit is seasonal dependent but this is a key fundamental to watch throughout the spring. If our months supply of inventory level stays around 2 months, it will be a tough year for buyers, probably a good one for sellers, but maybe not the best for a balanced housing market.
The City Council will soon be voting on finalizing the re-zoning of a portion of W 44th St in Linden Hills. There are several properties that have been classified as either R1 or R2B that will be changed to either R3 or R4, from the preliminary meeting the other night it looks like it will be R4. The City staff is recommending the R4 rezone because it seems to match up with the Community Planning and Economic Development council future plan for the transit corridors, which 44th St is. I think this will be voted on at the next City Council meeting.
2 bedroom upper floor of a classic duplex is avaialble for rent. Outstanding location one block to Lake Harriet on an upper bracket street. Classic woodwork, hardwood floors, freshly painted, 1 car garage space, paver fenced in back yard. Heat and water/sewer are included in the rent. Available to see.
