Your National Resource For Duplex Ownership

National Resources for Duplex Owners

Welcome to DuplexChick, your online destination for duplex ownership information.

Whether you're thinking of buying your first duplex home, or an experienced investor looking to sell, DuplexChick can provide you with up-to-date market information, tips on investment property ownership, and when youíre ready to buy or sell, help you find a Realtor who specializes in these unique properties right in your area.

Considering Buying? See how a duplex specialist can help you get a better deal

Considering Buying?

While every Realtor can sell you a home, not every agent can do the necessary financial analysis to find a duplex that is a good investment. Click here for a neighborhood duplex specialist who can help you meet your financial goals.

Sign Up For Our Free Duplex Buyer's Guide

Considering Buying? See how a duplex specialist can help you get a better deal

Considering Buying?

Unlike single family home owners, duplex owners facing foreclosure must also contend with potential tax consequences. Whether you are an owner occupant or duplex investor enduring the stress of being behind on mortgage payments, or needing to sell even though you owe more than your duplex is worth, a short sale can help reduce damage to your credit and tax obligations.

During this stressful time, let one of our Realtors who is an expert carry the load.

Thinking of Selling?

What If I Need To Sell? Regardless of market conditions, learn the tips and tricks to maximize your equity!

Sign Up For Our Free Duplex Seller's Guide

Kari Lundin, Keller Williams Realty Integrity

7401 Metro Blvd Suite 350, Edina, MN 55439 tel. (612) 290-5998

Featured Articles

Twin Cities Duplex Lending Limits Keep Up With The Market 01.16.17

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You may have heard Minneapolis and St Paul duplex prices are up. That’s good news if you’re a duplex seller; not so great if you’re a duplex buyer.

If you’re considering buying a duplex using an FHA loan, you may also be concerned that rising prices will exceed the program’s lending limits, forcing you to either bridge the gap between your 3.5 percent down payment and the loan limit, or even pursure a conventional loan with much higher down payment requirements.

There is a bit of good news. If you live in Hennepin, Ramsey or any of the seven counties in the metro area, the maximum loan limit on a duplex has been raised to $425,450. That means with just a 3.5 percent down payment, you can buy a property priced up to $440,340.

You can also use an FHA loan if you’re in the market for a triplex or four unit apartment building. The loan limits for those types of properties have been raised to $656,350 and $815,650 respectively.

If you take the long view, that’s remarkable. Over the next 30 years, your tenants may have contributed as much as $815,650 in your retirement account; even if the property never goes up in value.

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8 Things To Consider Before You Sell Your Minneapolis Duplex Yourself 12.12.16

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You may have heard there’s a shortage of inventory on the Minneapolis and St Paul duplex market and as a result, it’s a sellers market.

As a result, the thought may have crossed your mind to sell your duplex yourself. After all, if investment properties are such a hot commodity, why not save the commission and sell it yourself, right?

Well, have you ever tried to save a little and it ended up costing you a lot? I sure have. And selling your duplex yourself may be like that time.

Here are 8 things to consider before deciding to sell your duplex yourself:

  1. Pricing your property – Unfortunately, the value of your duplex is not determined by the amount of money you have into it, or by the amount you’d like to get out of it. Rather, it is determined by the amount someone else is willing to pay you for it. And even if you found a buyer willing to pay what you want or need, if it’s more than what the market believes it’s worth, a bank won’t lend them the money for it. Value is determined by comparable sales in the neighborhood.
  2. Sold properties include Realtors commissions – When determining the value of a property, both buyers and appraisers typically look at comparable sales on the Multiple Listing Service (MLS). All of these sales included commission. So, the true value of your property is the price, minus that commission.
  3. Buyers hope to save the commission too – When a buyer works with a Realtor, they are not responsible for paying that agent commission. Rather, it is taken out of the sales price of the property. Buyers benefit from an agents knowledge of the market, experience in negotiations, and guidance throughout the process without paying a thing. Why would they work with a For Sale By Owner unless: a) that owner agreed to pay their agent or b) agreed to pass the savings on to them.
  4. You’ll probably pay a buyer’s agent anyway – Chances are a Realtor may see your ad on Craigslist or Zillow and ask if you’d agree to pay a commission if they sell the property to their buyer. This may be somewhere in the range of 2.5- 3 percent, meaning rather than saving 6 or 7 percent, your saving half that amount.
  5. You’ll have out of pocket fees  even if your property doesn’t sell – Realtors pay the costs of putting a sign in your yard, putting it on the MLS, hiring a professional photographer, creating a virtual tour and all other marketing expenses, regardless of whether or not the property sells. These costs will become yours if you sell the property yourself. What’s more, you may choose to hire an attorney to help you with the paperwork. Attorneys charge by the hour regardless of whether or not your property actually sells. Realtors don’t get paid unless the sale closes.
  6. Time wasted with discounters and tire kickers – If someone calls on an ad you placed, you have no way of knowing whether or not they can actually afford your property. And yet, you leave work or your family to show it to them anyway. Sadly, there are a lot of people who can’t afford a property, but simply enjoy looking at real estate who end up wasting your time. Others are discounters, looking to save money by dealing directly with you. They hope either you don’t know what you’re doing, or are desparate enough to simply give them a deal in exchange for being done with it.
  7. 92 percent of all for sale by owners don’t sell on their own – According to statistics from the National Association of Realtors, only 8 percent of all for sale by owners are successful. The rest either listed their property with a Realtor, or decided not to sell.
  8. Properties sold using a Realtor actually net the seller 13 percent more than if the owners sold it on their own. Again, according to a NAR study, sellers actually net more money if they use a Realtor than they do on their own. That’s NET; which means after commissions and other costs of selling!

If you’ve attempted to sell your duplex on your own, incurring the costs of lost time and money, then end up listing with a Realtor anyway, you may have cost yourself more than you hoped to save?

Contact me if you’re thinking of selling your Minneapolis or St Paul duplex.

 

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Vacant or Full? How Should You Sell Your Minneapolis Duplex? 12.05.16

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Empty DuplexI am often asked by Minneapolis and St Paul duplex sellers who are thinking about putting their property on the market whether it’s better to have the building leased, or a vacant unit when it goes up for sale.

The best answer is, it depends. If your property is one an owner occupant may find appealing, know that it is a requirement for FHA insured mortgages that the buyer be able to move in within 60 days of closing. If both your units are leased, you have made it difficult for any owner occupant to consider your duplex; and right now, that’s a large percentage of today’s duplex buyers.

So should you just leave it vacant? This certainly makes showings easier and gives you a chance to put it in tip top shape. It also provides a new owner with an opportunity to lease it at market rent,. However, if it’s a financial burden to you, it isn’t necessary.

One option may be to have a tenants or tenants on month to month leases. This may concern residents, as they frequently believe that if the duplex goes up for sale, they won’t have time to find a place to live.

Clearly explaining the process to tenants may help alleviate these fears. Most lenders are taking 30-45 days to complete the funding of a loan on a property. Additionally, standard lease language usually requires tenants to receive 60 days notice before being required to move.

Duplex sellers should never agree to give a tenant notice until the day of closing. After all, if you tell a tenant to leave early, and the buyer fails to perform on the purchase, you’re left with a vacancy!

Simply explain to your tenants that at minimum, they will have 90 to 100 days or more between the time you accept an offer and having to move — that is, if they are even asked to do so. Any amount of time you’re on the market before your property sells will add give them even more time.

And of course, there is always the possibility they won’t be asked to move at all and can stay right where they are!

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