Comments Off on Is Your Minneapolis Duplex Right For A First Time Home Buyer?
A recent news story about the lack of houses for sale for Twin Cities first time home buyers said a lot about the duplex market without ever naming it at all.
According to the broadcast, there were fewer houses on the market in January of 2017 than there have been in any other month in the last 14 years. The biggest shortage of inventory is in homes priced below $300,000.
While the story didn’t say it, the same is true of duplexes. In fact, in January there were just 253 active duplex, triplex and fourplex listings on the Multiple Listing Service; compared to well over 800 at the height of the market in 2005-2006.
What do starter homes have to do with duplex values?
When the prices for houses in the first time home buyer category (below $300,000) rise and become less affordable, buyers start exploring other options; like duplexes.
If you’re a duplex owner with a property in a highly walkable neighborhood that’s in great condition, this is good news for you. One of the first alternatives first time home buyers explore as a means of keeping payments within their budget is duplexes. After all, the rent allows a more expensive duplex to actually be more affordable for a homeowner than a less expensive single family home.
One of the first alternatives first time home buyers explore as a means of keeping payments within their budget is duplexes. After all, the rent in effect reduces the cost of a more expensive duplex for the owner occupant, making as, if not more affordable than a single family home.
As a result, duplex prices go up as a result of increased demand from home buyers.
Right now, demand is high because supply of both quality duplexes and entry level single family homes is so low.
This has resulted in rising prices, making it a good time to be a duplex seller.
Comments Off on Do You Save Money When You Call A Duplex For Sale Sign?
When you call the number on a “For Sale” sign in front of a Minneapolis duplex and use the listing agent as your Realtor, can you save money?
Many people are under the belief that because that agent is getting a commission for both the buyer and sellers in that case, if the buyer asks, the agent will give them some of the commission.
That may be true with some Realtors, but not me. Here’s why.
When the seller signs a contract to put their duplex on the market, they are doing so with a real estate brokerage. A real estate brokerage is a company like Keller Williams Realty Integrity Edina.
That contract, and the terms the brokerage are willing to pay to any other real estate brokerage, is published on the multiple listing service. If that number will be reduced. if either the listing agent of the buyer and sellers agent have both sides of the transaction, that information needs to be published on the MLS, as it puts Realtors from other companies, and their buyers, at a disadvantage.
Second, the contract signed between the seller and the brokerage is between those two parties. Payment comes from the seller’s proceeds from the sale. In other words, it comes from their equity.
Buyers are not entitled to money from a contract they are not involved in.
Finally, and perhaps most obviously, why should a Realtor, brokerage or seller give a complete stranger a portion of their pay or equity?
Comments Off on The Spring Minneapolis Duplex Market Has Already Started
Nothing makes Minneapolis and St Paul duplex buyers come out of hibernation like 40 degree temperatures in January.
Most years, this happens the week after the Super Bowl. This year, however, buyers can’t seem to wait that long.
Trouble is, there’s very little on the market for them to buy. In case you think I’m telling you a tall winter’s tale, consider this: in January of 2007, there were 1445 active duplex, triplex and fourplex listings for sale on our Multiple Listing Service. Check out this table. MLS Duplex Inventory Since 2007
And at the end of December 2016? 279.That’s 100 fewer than were on the market even in January of 2016.
By en large the vast majority of buyers who have been reaching out to me in the early weeks of 2017 have expressed a desire to owner occupy an income property. Most have expressed a desire to live in either Minneapolis, St Paul, or first ring suburbs. Many of the properties currently on the market are in far out
Many of the properties currently on the market are in far out locations, or have too much deferred maintenance to qualify for the most common forms of owner occupant financing (FHA and the American Dream loan).
That means if you own a Minneapolis or St Paul duplex that’s in good shape, you could cash in if you decide to sell. You won’t have a lot of competition.
If you’re ready to simplify your life, or are just tired of being a landlord, give me a call at (612)290-5998 or send me an email at firstname.lastname@example.org It’s a great time to be a Minneapolis or St Paul duplex seller.