If you’re thinking of selling your Minneapolis duplex, but can’t imagine hanging on to it for another 10 years, you should give it serious consideration this year.
As I’ve stated countless times, we have a serious shortage of duplex, triplex and small multi-family inventory for sale.
And yes, if the trend continues, I do see this leading to a small uptick in value through the end of the year. Small uptick. As in a couple of percentage points; not the thirty-plus percent in value we’ve lost since the height of the market in 2005-2006.
Remember, today’s duplex buyer is incredibly savvy. They are looking for value and are willing to walk away from the property if the price isn’t right.
So why is it a great time to sell nonetheless?
Because the robo-signing settlement was approved by U.S. District Court Judge Rosemary Collyer once week ago today.
Guess what’s started happening in the week since?
Duplex owners who initially were notified their lender had scheduled a sheriff’s sale as much as 18-24 months ago and received reprieves as a result of the foreclosure freeze, started receiving notices.
Six weeks from now, provided their lenders do not give them another extension, these duplexes will go to the sheriff’s sale; after which the owners will have six months to redeem the amount bid, or lose the property to the bank.
If you add the six month redemption period to the six week notice of a sheriff’s sale, it’s easy to calculate bank ownership of these distressed duplexes at some time around the holidays.
Banks will also inherit any tenants. If they aren’t interested in managing rental property (most aren’t), the law requires them to give tenants 60 days notice to vacate.
In other words, those duplexes will be ready to sell next spring.
Fair warning; many are in the most prestigious neighborhoods in the Twin Cities.
Meanwhile, it’s 2012 and duplex buyers are out in force. They’ve rightly heard that with low interest rates and a backlog of bank owned inventory (which is currently in somewhat limited supply), it’s a great time to buy.
There just aren’t many Minneapolis duplexes for sale for them to look at!