Archive for April, 2015

Where Is The 24 Hour Notice Law Written?

said on April 28th, 2015 categorized under: Tenants

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residential tenancy agreementOne of the most frustrating things Realtors run in to when trying to show a duplex listed for sale on the Multiple Listing Service (MLS) is the misconception that tenants are required to receive 24 hours notice prior to a showing.

Realtors and our clients are often trying to coordinate times to look at properties, and then to concentrate showings in a geographic area. There may, for example, be three or four properties in a city or neighborhood we have interest in seeing.  In the interest of efficiency, we try to schedule them all at the same time.

Both agents and their buyers understand we are visiting a tenant’s home. We will do all we can to provide as much notice as we can to them that we would like to see their unit. However, a full day’s notice isn’t always possible. And if all the other duplexes are available to be seen with less notice, odds are very high we won’t circle back to that neighborhood to look at the one that required a day’s notice until we’ve exhausted all of our options elsewhere.

Many landlords are afraid of losing their tenants as a result of either them not having ample notice for a showing. However, if that tenant has a valid lease, leaving for that purpose would be a violation of that legally binding document.

Minnesota landlord/tenant law states a landlord may enter the premises at any time for business purposes provided there has been a reasonable attempt to notify the tenant of the visit. No where in Minnesota state law is that amount of time defined.

Successful duplex sellers simply have a conversation with their residents before the property is actively listed on the MLS. They explain the tenant is protected by his or her lease and can’t simply be kicked out because there’s a new owner. They add the residents are not required to leave for showings. And finally, they explain while everyone will do all they can to provide notice, they are not entitled to 24 hours, nor the right to refuse showings.

I have seen many sellers lose sales opportunities because they didn’t understand the law; and it cost them thousands of dollars.

Twin Cities Duplex Market Continues To Bloom

said on April 21st, 2015 categorized under: Twin Cities Real Est

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duplex market springs to lifeThe spring Minneapolis and St Paul duplex market is well under way, in spite of what the temperature outside may say.

In the week ending April 11, 2015, 22 Twin Cities multifamily property owners received and accepted purchase agreements on their investment properties. Of these, 82 percent will leave from closing with a check in their hands rather than a settlement with their banks. When those sellers accepted offers, they did so at an average off market list price of $217,903.

One year ago during the same week, just 13 sellers accepted offers on their duplexes. One hundred percent of those sellers were able to deposit a check in their bank accounts. On average, these sellers realized a sales price of $258,496.

It seems Minneapolis and St Paul duplex owners are finally realizing it’s a good time to sell. Forty of them put their properties on the market during the week, with all but one of them having equity in their properties. Last year, there were just 30 new duplex sellers during the same time, with 87 percent being equity sellers.

The single family home market saw the number of New Listings increase 9.7 percent for the week, while Pending Sales jumped 17 percent. Overall Inventory  decreased .2 percent.

For March, the Median Sales Price of a single family home was up 10.5 percent to $210,000. The average number of Days on Market also rose 7.4 percent 10 102. Nonetheless, sellers continue to receive 95.9 Percent of Original List Price.

Once again, the Months Supply of Inventory rose by 3 percent to 3.4. A balanced market, where both buyers and sellers have equal negotiating power, occurs when there is a 5-6 month supply of properties on the market. However slowly it may be, it does appear we are heading in that direction.

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Bouquet of rosesEthel Merman may as well have been belting about the Minneapolis and St Paul duplex market the week ending March 28, 2015, when she sang “Everything’s Coming Up Roses”.

There were 22 Twin Cities duplex, triplex and fourplex owners who accepted offers during the week. This is almost double the 12 sellers who did the same for the week in 2014.  Almost 91 percent of this week’s successful sellers will emerge from closing with an equity check in their hands.

The average off market price for pended duplex listings was up slightly over last year; from $201,455 to $204,472.

There was good news for buyers during the week as well. Twenty-seven new listings came onto the market, 85 percent of which are being sold by traditional sellers. Last year, there were just 16 new listings during the same period, with 93.7 percent of them belonging to traditional sellers.

New Listings sprang up on the single family home market as well, rising 10.4 percent. Pending sales were up as well, with 1360 more sellers accepting offers; an increase of 27.6 percent. In continued signs of a slowing balancing market, the total amount of Inventory was also up 2.4 percent.

For now, though, life couldn’t be better if you’re in the market to sell your Minneapolis or St Paul duplex.

Minneapolis Duplex Sellers Make A Comeback

said on April 2nd, 2015 categorized under: Twin Cities Real Est

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One horned rhinoceros in Kaziranga National ParkThe last few years duplex sellers in Minneapolis and St Paul were almost as endangered as black rhinos.

Duplex owners found themselves upside down, in an environment with little lending options and bottom-feeding buyers willing only to pay pennies on the dollar.

The recovering economy, low interest and vacancy rates combined with high rents, however, have helped Twin Cities duplex sellers make a roaring comeback.

The week ending March 21, for example, saw 35 new duplex, triplex and fourplex listings come on the market, 85.7 percent of them owned by equity sellers. Compare this to last year, when the week saw just 26 new listings, with 76.9 offered for sale by traditional sellers.

With more to chose from, buyers may have been taking their time during the week. Fifteen listed properties received offers, with 86.7 percent of those purchase agreements signed by traditional sellers. The average off market list price of these properties was $212,253.

During the same week one year ago, 18 listed properties went under contract. Of these, 78 percent did not involve a bank in the price negotiations. On average, these properties sold for $185,111.

The single family home market also saw a seller resurgence as the number of New Listings increased 22.1 percent. Pending sales also jumped, rising 27.1 percent.

However, as we discussed last week, we are starting to see an increase in Inventory, which is a sign we are moving toward a more balanced market. Overall Inventory was up 1.7 percent for the week. While that’s not a number that will immediately shift the balance, it continues to be one worth monitoring.