I have good news that has many prospective Minneapolis duplex sellers jumping for joy.
No, settle down. Prices aren’t back to their 2006 levels.
But — interest rates may not only help them get there, but help you sell your duplex be appealing to a buyer right now.
Take, for example, two prospective sellers I’ve been working with since last winter.
They have been in their duplex almost a decade.
In that time, their family grew. Now they now find themselves cramped and longing for a single family house with a yard. In other words, they don’t have to move, but they sure would like it if they could.
Last spring, the Twin Cities duplex market didn’t substantiate the price they needed to still have enough money left for a down payment on a home. This was due largely to interest rates for investor borrowers being above six percent; and at that mark, the property just didn’t make financial sense.
Since then, interest rates have dropped approximately two percent. That doesn’t sound like a lot until you realize one percent in interest is equal to one percent of the amount you owe on your loan; per year. So, if you owe the lender $250,000, one percent of that annually is $2500.
In the case of my duplex sellers, this drop in interest rates means their duplex went from making little, if any, financial sense, to being one of the best deals not yet on the market.
And that will help them finally get the elbow room they so desperately need.
Call me if you’re thinking about selling your Minneapolis duplex. I may be able to give you the same happy news.