Archive for May, 2012

Why Cash Duplex Buyers Are Like Race Horses

said on May 7th, 2012 categorized under: Buying A Duplex

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2012 Kentucky Derby Winner, I'll Have Another

2012 Kentucky Derby Winner, I'll Have Another

It seems if you want to buy a Minneapolis duplex these days, you might need to have a large daily limit on your ATM.

That’s because to a duplex seller, cash is like betting on a sure thing.

Many of the best duplex properties coming on the market generate a lot of buyer interest, and are getting multiple offers.

And when it comes to choosing a low all cash offer, or a higher offer that requires the buyer to get a loan, many duplex sellers are  choosing to take less money now.

That’s because to a Minneapolis duplex seller, cash offers are sure to come through, while a financed offer is a maybe.

In a seller’s mind, there are all sorts of things that could go wrong in the process of a buyer obtaining a bank loan.

For example, a furnace might fail an inspection, which would mean the buyer’s lender would refuse to finance the property, cancelling the sale.

Or, an appraisal might come back lower than the purchase price, resulting in the seller possibly receiving less than even the cash offer they have in hand; all due to a single appraiser’s opinion of value.

An offer from a cash buyer can typically close in a matter of days or a week.

Financed buyers, on the other hand, usually take more than a month. This is due to the bank’s requirements for documentation of a buyer’s income, as well as obtaining an independent opinion of value from an appraiser.

To many duplex sellers, especially banks, this is not a sure thing. And they simply want to bet on a buyer who is.

Minneapolis Duplex Sales Duplicate Themselves

said on May 2nd, 2012 categorized under: Twin Cities Real Est

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duplex duplicatesThe more the Minneapolis duplex sales change, the more they stay the same.

Take the week ending April 21, 2012, for example. There were 25 Minneapolis and St Paul duplexes, triplex and four unit apartment building owners who received and accepted purchase agreements. Seven of them did not have to consult with a bank to do so.

This is exactly the same number who did so last year, with exactly 25 duplexes, triplexes and small apartment buildings selling for the same week.

The biggest difference, however, is this year, the average list price those properties left the market at was $154,120. The average sold price for the week last year was $108,161.

While there currently a difference in list price to sold price of around 10 percent, this adjustment will still result in duplex sellers receiving higher values for their properties.

New inventory continued to mirror the statistics of last year as well. There were 32 new listings for the week, 56 percent of which were brought to the market by traditional equity sellers.

For the same week last year, there were 33 new listings, with 52 percent of them brought to the market by traditional sellers.

While inventory continues to be short in the multi-family property market, single family homes saw a week over week increase in new inventory of 13.9 percent.

This is good news for prospective home buyers, as the number of pending sales was up 41.2 percent, bringing the total amount of inventory available on the market down 28.4 percent.

I’ve said it before and I will again. If you’re a duplex owner considering selling, it’s a great time to do so.

We simply can’t find enough property for our buyers!

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