Archive for July, 2017

Is It A Duplex Or A Unicorn?

said on July 20th, 2017 categorized under: What Does That Mean?

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The other day while doing a 3000 foot survey of the real estate available for sale in Minneapolis and St Paul, I stumbled into a duplex listed as a single family home.

Thinking I must be missing something, I called the listing agent for clarification

. Her explanation didn’t quite make sense.

She said that because the property had one property tax information identification number (PID), both she and her broker believed it should be listed as a single family home. Besides, she said, even though it was a side by side duplex, it would make a terrific, large single family home.

There are all sorts of things wrong with her information.

First, many people mistakenly believe “twin home” is another name for a duplex. Well, that’s a little like saying a horse and a unicorn are the same thing. “Twin home” is another name for townhouse; the only difference being that the former may share only one wall with a neighbor.

Duplexes are two homes, under one roof, with one property identification number, and one ownership entity. This is important because the bank will give the number of loans on a property equal to the number of PIDs.

Twin homes have separate PIDs. Both units are usually owned by separate parties, with their own loans.

Second, converting a side by side duplex to a single family home will not only involve the opening up of a load bearing wall, but even with the best contractors on the job, will likely result in an unorthodox floor plan.

Finally, and most importantly in this instance, the Realtor has most likely stacked the odds against her seller getting an offer on the duplex extremely low. Most people looking for multifamily properties in the Twin Cities are looking for them under the category of Multi Family homes. They are not looking in single family home listings.

This story underscores the importance of hiring an expert. If you’re considering selling your Minneapolis, St Paul, or suburban duplex, it’s in your best interest to have an experienced multifamily property Realtor helping you get the most money possible in the shortest amount of time.

If you’d like to talk with me about selling your duplex, feel free to fill out the contact form above or give me a call. I’d be glad to give you a hand.

Comments Off on It’s A Great Time To Be A Minneapolis Duplex Buyer Or Seller

Great news for duplex buyers and sellers!

If you read this morning’s Minneapolis Star Tribune,  you may have seen two articles that may affect your decision to either buy or sell a multifamily investment property in the Twin Cites any time in the next decade.

The first headline screamed the Twin Cities will need nearly 71,000 new apartments in the next 13 years in order to keep up with demand.  The story was based on a report from the National Multifamily Housing Council and National Apartment Associations.

It cited decreasing home ownership, international immigration, and delayed home purchases thanks to shifts in the timing of the drivers of home ownership, like getting married and having children.

Whether you’re thinking of becoming a real estate investor or already own and are considering buying more, this bodes well for the long-term return on your investment. With low interest rates and skyrocketing rents as a result of demand exceeding supply, it is still a good time to buy; despite rising prices and low inventory.

In the same section of today’s news, another story brought good news for Minneapolis and St Paul duplex, triplex and apartment sellers. The number of listings on the market for sale in May fell to a 14-year low. While there were 8,744 new listings, which was roughly the same number as last year, they sold so fast that by month’s end, there were 17 percent fewer than at the same time last year.

In other words, it’s also a GREAT time to be a seller.

If you’re considering buying, selling, or exploring the idea of investing in real estate, please give me a call or send an email. I’d be happy to help you find the path that’s right for you.