Home Deals - Bargain Real Estate in Minnesota

Home deal #27

2006-11-23T07:32:00.000-08:00

Okay. . .I'm back . . . sort of . . . Actually with a new baby and a husband who's probably going to have back surgery, I'm probably not back. However, this one looks too good not to mention here. Looks nice. $35,000 under assessed. Lots of amenities (including pool, hottub, and indoor and outdoor BB courts) and some room for expansion. Greenleaf Elementary and Falcon Ridge Middle. Might be worth looking at, esp. if you have active kids!

13403 Geneva Way, Apple Valley, MN | | Listing Information

Home deal #24 officially pending

2006-08-10T08:20:00.000-07:00

Home deal #24 is officially off the market. Pretty short time on market considering the price bracket.

Home Deals - Bargain Real Estate in Minnesota: Home deal #24

Home deal #26

2006-08-05T19:12:00.000-07:00

You don't see many foreclosures on this blog for almost $300,000. However, this one just might be worth it. 4 beds, 4 baths, 4 car garage. 4 beds are all on one level. I think the den in the lower level could be pretty easily converted to a bedroom if the existing window was enlarged to make an egress. Well over 3,000 FSF. $20,000 under assessed. Backs to a park that's devoted to "green space", so it's just trees and it should stay that way. Very close to the YMCA and Ridges hospital (and a bunch of other stuff too.) Has nice potential for a "mother-in-law" apartment or roommates/renters in the lower level since the 2nd 2 car garage opens into that space. That garage is heated and insulated just in case you'd rather use it for a workshop. For the right person this one just might be a deal.

Here's the listing:
408 Summit Lane, Burnsville

Here's the "bird's eye view for local.live.com:
Bird's eye view

Rehabs are coming back on the market

2006-07-29T07:37:00.000-07:00

I guess I've been doing this for awhile now, since some of the rehabs I've been watching are coming back on the market. What's weird? Fall is never the time to sell a house in Minnesota. I'm surprised how many rehabs are coming on the market now. (In my opinion now's the time to be buying a rehab . . .fix it up over winter and sell in the spring.) I'm also surprised how many people think that as long as you add stainless and granite you can overprice the neighborhood (and the comps) by 10s of thousands of dollars. I guess you only need to get lucky with one buyer, but it seems risky to me. I'm going to stick with my original premise that some rehabs can't support granite and stainless and you have to stick with lower end finishes if you're going to stay competitive in the market. (Some houses really need appliances from the nineties off of Craig's list and a nice ceramic or formica. These houses can't "afford" a 2-4 thousand dollar chunk of rock in the kitchen.) I'll let ya'll know if any of them actually sell :)

Home deal #25

2006-07-18T11:30:00.000-07:00

It's been awhile since I've seen a foreclosure with interior pictures that make it look pretty nice. $20,000 under assessed. ISD 196 side of Eagan (Eagan, not Burnsville schools). 5 legal bedrooms and a master bath. Backs to a pond. The listing says the roof is shot. I'd check the Masonite pretty carefully too. Also be on the lookout for any evidence of a roof leak. All in all it's probably worth checking out.

MLS 3224191

Price drop on home deal #24

2006-07-14T17:51:00.000-07:00

Down $10,000 to $369,900. That's a pretty quick reduction. I think they're motivated (as suspected earlier).

Home Deals - Bargain Real Estate in Minnesota: Home deal #24

Home deal #23 is off the market

2006-06-30T14:53:00.000-07:00

Huge with a pool for $246,000 -- it didn't last long.

Home deal #23

Home deal #24

2006-06-28T08:05:00.000-07:00

This one looks interesting. It's part of an estate and it looks like the estate representative was assigned in June of 2005, so the family has probably had the sale of this home on their minds for awhile. The estate representative has a home address in California, so that's probably complicating things a bit too. I guess my point is that a sale is probably desired on the immediate side of later, so that will probably give you some additional bargaining room. Now, why it might be a deal: It sounds like they didn't get to do very much staging, so the house shows like it needs all new paint and carpet. It might be true, but it might also mean that the real estate agent knows in this part of this market new paint and carpet is expected. The lot/location is beautiful. It backs on to Sunset Lake park. It's priced $40,000 under assessed value. Now, it's still $380,000, but for the right person it's probably a deal!

MLS 3202957

Home Deal #22 off the market

2006-06-28T07:30:00.000-07:00

That one didn't take long. Home deal #22 is officially off the market.

Home Deals - Bargain Real Estate in Minnesota: Home deal #22

Home deal #7 FINALLY moves to pending

2006-06-26T19:22:00.000-07:00

Home deal #7 finally moves to pending. I will be very curious to see what this one actually closes for!

Home Deals - Bargain Real Estate in Minnesota: Home deal #7?

The auction didn't work

2006-06-22T20:06:00.000-07:00

Well, the interesting marketing strategy (auction) I mentioned last week didn't work (as expected.) The house is now on the market FSBO for $359,500. I guess we now know about what the reserve was huh? I think they're being a bit overly optimistic given the market slow down and the fact that (on the surface at least) it looks like they didn't do much more than some carpeting and paint. Here's the new link to the listing:
New Apple Valley listing

Here's my original post if you're interested:
Home Deals - Bargain Real Estate in Minnesota: Interesting marketing . . .could it be a deal?

Home Deal #23

2006-06-22T11:19:00.000-07:00

Here's an interesting one. HUGE house with over 3200 FSF + a triple garage and inground pool. The listing says it needs cosmetics and at over $50,000 under assessed it's probably right. However, lots of cosmetics can be taken care of for $50,0000. Also, this house appears to be lived it and not in foreclosure, so at least we know it's probably livable and probably not deliberately trashed. It does back on to 35W. There is some free space, but that's obviously not ideal. 191 schools. All in all it's probably worth checking out for curiousity's sake if nothing else :) Priced under $250,000 BTW.

MLS 3223355

And now the local.live.com view . . .

local.live.com view

Deal #21 pending. What's going on?

2006-06-17T20:14:00.000-07:00

You should probably read the original post for some of the background on this one, but the pending action is almost as confusing as the listing. Home deal #21 is pending after a UPWARD price change of $40,000 to $319,900. Whatever.

Home deal #21

Nice guide for looking at homes

2006-06-17T20:05:00.000-07:00

Whether you're looking to flip a house or live in it, it's good to know what you're getting into. I'd still recommend a professional inspection in most cases, but this will give you boatloads of information to allow you to do your own pre-inspection to scope out major (and minor) issues. The more you know the better off you are. The link you want is the top one to the entire pdf.

Residential Rehabilitation Inspection Guide

Deal #9 finally pending

2006-06-15T08:14:00.000-07:00

Home deal #9 is officially off the market. I guess the relist at $180,000 finally did the trick.

Home deal #9 comes down again

Interesting marketing . . .could it be a deal?

2006-06-14T08:36:00.000-07:00

This is an interesting marketing strategy and if they actually sold the house for the $249,900 opening bid it would certainly be a deal. However, in the finer print you'll read about an undisclosed reserve and since they bought the house for $325,000 a few months ago I doubt the reserve is $250,000. If the strategy works it would certainly be a nice way to sell a house. Get all of the showings out of the way and the house off the market in a week. In a hotter real estate market it could definitely work. However, I don't think it will work this time . . .we'll see.

Apple Valley Home: Full Tour and Pictures

Kiyosaki says it's time to go pro

2006-06-14T07:56:00.000-07:00

Robert Kiyosaki is forecasting good times ahead for true real estate investors and bad times ahead for the amatuers. Flippers who aren't able (or willing) to make their monthly mortgage payments will be dumping properties at a loss. I guess we're now entering the time when we find out if the flippers have the money to back them up. (Given the large % of exotic financing I have my doubts . . .)

How to Profit From a Cooling Real Estate Market

Home deal #9 comes down again

2006-06-11T13:44:00.000-07:00

Location is still less than ideal in my book, but at least it's close to lots of stuff. Also looks like there's alley access if you want it (or another garage.) If you've watched this blog for any amount of time you'll know despite the "new listing" tag this has been on the market FOREVER and has had significant price drops. I think the owners are motivated and at $180,000 listing price I'm not even sure you'll feel compelled to do too much negotiating. All in all I still think there's room for deal.

MLS 3213860

Home deal #22

2006-06-09T19:05:00.000-07:00

It's in foreclosure in an area that seems to have more than its fair share of foreclosures. That being said, it looks hopeful -- esp. at $189,900. Vinyl siding. 196 schools. Garage square footage puts it at a quadruple. I'm sure you couldn't fit 4 cars in it, but that's probably enough room for your toys. Assessor lists it at 4 bedrooms, so it probably could be . . . Assessed value is $234,000 BTW. If you go inside you'll probably be scared, but look beyond what you can simply throw away and there just might be a deal!

MLS#: 3179536

Home deal #21

2006-06-01T12:48:00.000-07:00

Okay, this one is WAY too interesting to not mention here. :) On the surface it doesn't look like anything terribly special except that the realtor used a picture from live.local.com (mentioned in previous post) as listing picture #1. Not a bad price for the square footage (certainly has come down quite a bit from previous asking prices), but nothing to qualify it as an extraordinary deal either. Here are the interesting things: 1) It's owned by a trust. 2) The trust bought it for $320,000 in 2004. 3) It's also listed on Craig's list at a SIGNIFICANTLY lower price. Check out Craig's list from June 1 2006.

I think if you compare the pictures you'll come to the same conclusion I did. So, my guess is that if the owner finds his/her own buyer he/she doesn't have to pay the real estate comission. Maybe there's something else going on -- that's just a guess on my part. Anyway, the Craig's list price of $259,900 puts this house right at assessed and probably makes it worth checking out. It just might be a deal!

MLS #3209199

Home deal #20

2006-05-29T08:28:00.000-07:00

Equity builder where the seller is actually offering an allowance for the repairs. Not a bad deal in an era where "equity builders" seem to sell faster than most things. Definitely could use some updating, but what do you expect for $199,900? ISD 196. Priced under assessed. Basement is unfinished, but has egress windows. That might be hopeful. Backs to a park. All in all it just might be a deal!

Home deal #20

Follow the link to the Windows Local Live view of the house; the house is the one with several cars in the driveway, bordering onto the park (with the row of pine trees behind it), third one in from the main road (which is Dodd Blvd.).

Home Deals #12 is pending

2006-05-23T08:57:00.000-07:00

Looks like home deal #12 (pool and all) is off the market.

Home Deals - Bargain Real Estate in Minnesota: Home deal #12?

Wow! Fun new home finding tool!

2006-05-19T17:17:00.000-07:00

Here's a new tool in your home finding toolbox. live.local.com is a Microsoft beta application that gives you a great view of the neighborhood . . .and the specific house you're thinking of looking at.

For example, here's a new view of home deal #17

Bird's Eye view of home deal #17

Home Deal 18 pending

2006-05-19T17:03:00.000-07:00

Further evidence that the market isn't slow if you're priced right. Home deal #18 is officially pending.

Home Deals - Bargain Real Estate in Minnesota: Home deal #18

Home deal #3 finally PENDING!

2006-05-17T18:17:00.000-07:00

If anything give evidence to my hypothesis that executive homes in Lakeville are overbought this does. However, home deal #3 is finally off the market!

Home deal number 3?

Home deal #18

2006-05-17T13:04:00.000-07:00

This one has some promise at least (esp at $195,000). It was purchased for more money just a few years ago and it looks like the owners might have actually done some updates before the foreclosure. Bank owned. Pretty good square footage for the price. Needs some "updates and repairs", but at least there are interior photos! There's obviously a missing window, but that can be replaced easily enough. Location is less than ideal in my book, but it is surrounded by other single family homes and does have lots of woods around. All in all this might just be a deal!

MLS 3172063

Home deal #9 price reduction

2006-05-17T06:49:00.000-07:00

Home deal #9 drops to $190,000 . . .now I'm beginning to wonder what's going on . . . .

Home Deals - Bargain Real Estate in Minnesota: Home deal #9

Things to consider when buying a home

2006-05-12T09:24:00.000-07:00

While I don't agree with everything in this article, most of it at least deserves your consideration. The gist? When buying a house stay focused on the fundamentals.

What I Wish I Knew Then About Home Buying

Home deal #14 is off the market

2006-05-08T11:13:00.000-07:00

Home deal #14 is officially pending . . .now I'm just waiting for #3. #3 really is a good deal for the right person . . . .

Home Deals - Bargain Real Estate in Minnesota: Home deal #14!

Home deal #17

2006-05-04T06:42:00.000-07:00

I'm encouraged by:
1) Egress windows
2) Vinyl/metal siding
3) Location is okay, but Blackhawk can get a bit busy and it is in ISD 191
4) Bigger yard
5) Interior photos despite needing "TLC and imagination".

It is priced quite a bit under assessed right now and that's always a good sign. All in all it's probably worth checking out. I think there just might be a deal.

MLS 3194260

Home deal #15 is pending and #12 is back where it belongs

2006-05-01T19:48:00.000-07:00

Well, home deal #15 must have been in half decent shape since it sold pretty fast when they finally got the pricing right. In the meantime, home deal #12 is back at $209,900 where it belongs after a short-lived price increase. #12 also got a bunch of updated pictures that make it look a lot better.

Home deal #12?

Home deal #16 officially pending

2006-04-27T08:40:00.000-07:00

Wow. Home deal #16 didn't last long at all. Proves the market is still hot if you have the right price I guess. Anyway, home deal #16 is officially pending.

Home deal #16

Home deal #3 -- serious price reduction

2006-04-24T10:23:00.000-07:00

I think it's pretty safe to say the owners of home deal #3 will officially be losing money if they sell at the new listing price of $419,900. $50,000 under assessed and competitive with what they paid for new construction in 2003. (Plus they've done a bunch of additional "finishing" like a deck and window treatments.)

The agent hasn't fixed the pictures yet. You'd think she'd take a new one of the outside at least. Oh well. I think this one is a true deal . . .in the $400,000s market . . .

Home deal number 3?

Home deals #13 and #4 are pending

2006-04-19T07:09:00.000-07:00

Deal #13 didn't sell in a week, but it didn't take too much longer! Home deal #4 finally got a buyer willing to deal with the swimming pool in whatever condition it might be in. Might that have something to do with the ever improving weather? Could be. Anyway, home deal #13 and #4 are pending.

Home deal #13

Home deal #16

2006-04-18T07:06:00.000-07:00

I'm not thrilled with the location on this one and if you've been reading this blog long you'll know the school district isn't my favorite (but it isn't bad). However, if you're looking for a newer house in pretty good shape with LOTS of potential in the basement here it is. Finish the basement and pick up an extra bath and and extra 800 or so square feet . . . the next thing you know you've got a house worth a lot more than the listing price of $199,900.

MLS 3184224

Some mortgage hints in times of rising interest rates

2006-04-18T06:50:00.000-07:00

If you're in the market for a new house you're probably well aware of our climate of rising interest rates. Here's an article with a few hints about protecting yourself. The moral of the story? For most people traditional 15/30 or 40 yr. fixed rate loans are becomming more and more attractive.

The Mortgage Squeeze

Home buyers have more options

2006-04-13T10:25:00.000-07:00

According to this article in the Star Tribune listings are coming on the MLS at a record pace. This is making the demand look weak, even though it is still quite strong. Despite some price declines, overall appreciation is expected this year -- somewhere in the 2-4% range. (Of course, I think that's from a realtor and they do have some reason to be biased.) Anyway, the moral of the story is that buyers have a lot more power than they did a couple of years ago.

Home buyers firmly in driver's seat

Home deal #15? How much can a house be trashed in 2 years?

2006-04-11T08:23:00.000-07:00

Regretfully the answer to the "how much can a house be trashed?" question is "a lot". However, this house went into foreclosure not long after it was purchased. It's also been on the market FOREVER so it's been unoccupied for a LONG TIME. Usually that's a bad thing, but banks tend to winterize, so . . . anyway, why might this be a deal?

*Newer windows, siding, central air.
*Nice yard in location with many nicer homes.
*Across the street from a bunch of school owed park/open space.
*Been on the market a long time, but the bank finally did a significant price drop that put the house under assessed value.
*As with most properties on this blog, I don't think a flipper has a chance of making money. However, if you like the location and are willing to fix whatever has been done to it in the last two years, you might just be able to get a deal.

MLS 3093799

Another price drop on home deal #7

2006-04-04T19:15:00.000-07:00

We've now had 2 price drops on home deal #7 in a fairly short period of time. Moral of the story? I think the seller is becoming more and more motivated. Probably not a deal for a family with small children, but if the kids are older or you're looking for one level living . . .this definitely has potential to be a deal!

Home deal #7?

The ups and downs of ARMs

2006-04-04T08:09:00.000-07:00

Okay, lately there haven't been any downs of ARMs, but in theory . . . Anyway, with the fed continuing its interest rate hikes, people with adjustable rate mortgages are being hit harder and harder. A few that bought at the wrong time, the wrong place, or with wrong advice are finding that their payments are increasing and they're inside out on their mortgages. Obviously that's never a happy position for anybody to be in. According to this article the banking industry is looking at a $100 billion loss to due to foreclosures. I'm hoping this industry avoid this loss by coming with something . . .fixed rate alternatives if nothing else . . .time will tell. . .

Some homeowners struggle to keep up with adjustable rates

How Strong Is the Housing Market Where You Live?

2006-04-04T07:52:00.000-07:00

This chart shows a bunch of housing related stats for 30 major metro areas. Of course, even within each metro area the statisics will vary A LOT, but this chart gives you an idea, in broad terms, where your metro area ranks. Looks like Texas is largely undervalued . . .don't think I'm going to be moving there anytime soon though :)

How Strong Is the Housing Market Where You Live?

Robert Kiyosaki and Boom/Bust strategies

2006-04-04T07:39:00.000-07:00

Robert Kiyosaki (Rich Dad, Poor Dad fame) explains the anatomy of a boom/bust cycle and how to make money in one. BTW, most people more or less agree that the Twin Cities Metro is not in a boom/bust cycle. Why? We never really boomed. Yes, prices went up a lot, but not nearly as much as they did in other places. Yes, prices around here are probably going to stagnant or reverse slightly over the next few years and that does create opportunities, but not the pennies on the dollar kind. . . BTW, I think the greater opportunities are going to be in: overbuilt really expensive houses and overbuilt townhouses. So, if you're in the market for one of those you may want to wait a bit until things get a little worse. Just my opinion :)

Booms, Busts, and Where Opportunities Occur: Why the Rich Get Richer

Home deal #14!

2006-04-01T07:18:00.000-08:00

Ummm . . . unless I'm really missing something on this one, it is priced to sell fast! $25,000 under assessed in nice Apple Valley neighborhood. Very close to Redwood Park (with its community swimming pool) and Alimagnent Park with its lakes. I'm not quite sure what the deal with the garage is (it's listed at over 800 sq feet, but it looks like it only has a single car enterance.) At this price, I'm not even sure it matters . . . Driveway is kind of beat up and the house need a patch of new sod or intense seeding. Has a rough in for a third bath if you'd like one in the lower level. I don't think this one will be around for long!

MLS 3175414

Home deal #1 and #11 are pending

2006-03-31T13:28:00.000-08:00

Well, it looks like home deal #1 is finally pending (slower than I thought) and #11 is pending too (that one went pretty quickly, as expected.) So, unless the sale falls through, home deals #1 and #11 are off the market.

Home deal #13

2006-03-30T18:00:00.000-08:00

Okay, I'm not totally convinced this is a "sell in a week" deal, but I do think it will sell on faster side of slow. (I'd be surprised, but not stunned, if it was still on the market in a month.) Anyway, the good: 4 bedrooms with 3 on one level, lots of newer stuff including kitchen and furnace, asking price is under assessed value, lots of neighborhood trees, close to a couple of ponds, Eastview HS. The not-so-good: 70s darker trim and lack of curb appeal might give you some additional bargaining room. All in all, even at the asking of $235,000 it's probably not a bad deal.

MLS 3173950

Life isn't easy for Ginger Alexander and Kirsten Kemp

2006-03-30T09:42:00.000-08:00

Here's an article about flipping. Nothing earth shattering, but a good reminder that the people who actually make money on Property Ladder are the exception, not the rule. To make money flipping you're going to need money and time and let's face it, you can make money doing lots of things if you have money and time. One thing I learned in this article? Richard Davis on "Flip this House" has a wife who's a doctor. From watching the show I wouldn't have even assumed he was married . . . I'm pretty sure Ginger is single for you Ginger Alexander fans that come across my blog occasionally . . . Another thing to remember, true flippers need to act fast and can't pay more than 65% of retail. That doesn't, however, mean that there aren't deals to be found on houses you actually want to live in. Even saving 5% or 10% helps in that case! :)

Flipping houses for a living is a real trick

Lakeville executive homes overbought?

2006-03-29T06:40:00.000-08:00

I was doing a little bit of market analysis this morning, and there are currently 118 homes for sale in Lakeville (ISD194 actually) priced OVER $500,000 ($499,900 doesn't count). I'm pretty sure this represents an overbought market. My guess is that there are going to be some Lakeville bargains available in this price range. The only problem? There aren't all that many people who can afford a 1/2 million dollar home even if it is a bargain. . . .How does $100,000 down and $2500 a month + taxes and insurance strike you? If that seems doable then start looking at Lakeville executive homes. I'm betting there are some bargains to be found!

Home deal #12 price INCREASE!

2006-03-28T15:28:00.000-08:00

Ummm . . .yeah . . . when you write your listings it's important to get the price right. Oh well. Home deal #12 now at $215,000 from $209,000. Probably still a deal if you can talk them down to $209,000. At $215,000 it's a bit more questionable. . . .

Home Deals - Bargain Real Estate in Minnesota: Home deal #12?

Home deal #10 is pending

2006-03-27T08:51:00.000-08:00

As expected home deal #10 didn't last for long. Home deal #10 is officially pending.

Home deal #10

Home deal #12?

2006-03-26T09:11:00.000-08:00

As spring approaches it seems the deals on houses are getting fewer and farther in between. However, this one has a chance. Nothing terribly special, but probably a pretty good price for what it is ($209,000). Also has an inground pool if you'd appreciate something like that.

MLS 3171753

Another price drop on #4

2006-03-22T20:09:00.000-08:00

Okay. There has got to be a story here. I think I might have to actually go out and look at this one . . . Anyway, another $15,000 drop on the asking price brings it down to $225,000. Definitely a sign of seller (a bank) motivation. The question, of course, is why?? Banks around here tend to be overpriced, so . . . .hmmm . . .

Home Deals - Bargain Real Estate in Minnesota: Weird enough to be deal #4?

A few hints to help buy a bargain house

2006-03-20T11:58:00.000-08:00

There isn't much in this article that's revolutionary. Look for houses when other people aren't. Be okay with a few imperfections. Make lots of offers. Seek houses that have been on the market awhile, etc. However, it is a nice, concise reminder of things to keep in mind when you're looking for a deal.

As real estate market cools, 'buys' return

Home deal #11??

2006-03-14T19:03:00.000-08:00

I'll be honest that at this price I'm not sure this is a deal yet . . . I think it could be though. Right now it's advertised as a 2/2, which is the only thing it can be advertised as. However, the third upstairs bedroom was changed into a dining room and it could be changed back with the addition of two walls. Yes. Adding two walls is a pain, but it's not particularly expensive. Also the downstairs office is "just" missing an egress. Again, a pain, but not a super duper expensive one. So, without too much expense this house could be a 4/2, which makes the price a lot more "deal like". It's got the older, darker, woodwork which will turn lots of people off and possibly give you some bargaining room. Now, the upside: Very close to a couple of parks. Maintenance free siding. Newer garage door/doors/gutters/roof/kitchen appliances/CA/furnace/water heater/etc. Nice backyard. ISD 196, Eastview HS.

Property Details - 4945 142nd Path W - Apple Valley

Home Deal #7 Price reduction

2006-03-14T10:08:00.000-08:00

Home deal #7 has dropped $5000 in the asking price. That kind of surprises me given that spring is just around the corner (yesterday's snowstorm excepted). Anyway, this might be showing some additional seller motivation considering the woods will be budding out soon! For the right person, this is probably a deal.

Home Deals - Bargain Real Estate in Minnesota: Home deal #7?

Home deal #10

2006-03-11T11:18:00.000-08:00

The remarks say best value in Eagan. For once the remarks might actually be right. Priced under assessed. Nicer lot with nice garage. Pretty good size. Inside looks pretty good . . .it might just be worth checking out! The outside doesn't have a ton of curb appeal, but if you read my post on the "cute factor" you know my opinion on curb appeal and how it relates to a deal!

MLS 3164343

Home deal #9

2006-03-07T12:08:00.000-08:00

This one has been on the market for awhile and I think it has finally dropped to a price that just might make it a deal. Location is less than ideal, but it is close to 3 Rosemount schools as well as downtown Rosemount. It's small, but at least it has egress windows and it looks like there's alley access to the back if you want more garage space. Also has 5 bedrooms -- definitely a rarity in a house of this size and price ($200,000). All in all, take a look, at just might be a deal!

MLS 3118365

Home deal number 8 is pending

2006-03-07T11:26:00.000-08:00

Home deal number 8 is pending. Officially it lasted a whole two weeks on the market, but usually deals don't go "pending" until after the inspection, so it probably was actually on the market less than that.

Home Deals - Bargain Real Estate in Minnesota: Home Deal #7 or is it #8??

Appraisals largely meaningless

2006-02-27T08:38:00.000-08:00

I've long thought that the $400 or so dollars you spend for a home appraisal is wasted money. It certainly does nothing to protect the buyer and according to this article is doesn't even do anything to protect the lender.

Why have I long thought appraisals are meaningless? I've bought 2 houses and in both of them the appraisal was within $100 of our offer price. An "objective" analysis would never be that close. The fact of the matter is that they were rubber stamping our offer. I think that was fine for us, but not for everybody.

According to this article appraisers have a big motivation to get the deals to go through whether they're overpriced or not. Why? If the deal goes through the realtors, broker, and banks all get their commissions. If the deal doesn't go through nobody gets anything. Moreover, the bank is most likely going to sell the loan within a year or so anyway, so why would they care if the appraisal is too high? Who gets stuck? The buyer who's inside out on his or her mortgage because he or she paid too much. The buyer has even greater problems if the market "corrects". So, moral of the story, do your own due diligence. Don't completely trust anybody who makes money off of the deal, not even the appraiser.

Inflated appraisal can leave homeowner deflated

Home deal #4 price reduction

2006-02-24T11:36:00.000-08:00

Home deal #4 has had a price reduction. I told you it would be hard to sell a house w/ an inground pool and hottub in the winter "as is" and with no disclosure :) Of course, there might be (and probably is) other stuff wrong too, but at the right price anything can be a deal.

Weird enough to be deal #4?

Home Deals #5 pending

2006-02-24T11:31:00.000-08:00

Looks like hime deal #5 is off the market . . .unless the transaction falls through . . . Home deal #5 is now pending.

Home Deals - Bargain Real Estate in Minnesota: Home deal #5?

Home Deal #7 or is it #8??

2006-02-22T19:38:00.000-08:00

Looks like a winner on the surface of things.
*Asking $212,000 and even has interior photos . . .that's encouraging.
*Open this Sunday, February 26 from 1-3. (I wouldn't be shocked if it's off the market by then . . .)
*Cul-de-sac lot very close to park entrance. Also close to a school and 196 district offices.
*Eastview H.S.
*3 bedrooms on one level.
*Masonite siding, but at least it's freshly painted :)
*I'm betting this one will go fast . . .

MLS 3155017

FICO score estimator

2006-02-21T19:46:00.000-08:00

Spring is approaching and the listing agents know it! I've actually seen a few houses with recent increases in their asking prices. Needless to say, those aren't deals. :) In the meantime, whether you're looking at a house to live in or an investment property, your FICO score has a huge impact on your ability to buy. Of course, you should get your real scores early in the searching process, but here's a freebie to get you started. (You DON'T have to BUY or SIGN UP for ANYTHING . . .unless you decide you want to.)

The FICO� Score Estimator

It's a flip. Is it a deal?

2006-02-18T20:01:00.000-08:00

As I mentioned in my last past, I keep 1/2 an eye on the local flipping game. Here's my first "watched flip" that's actually made it back onto the market. I looked at this house last spring when it was on the market for $427,000. So, at $609,000 I very seriously doubt it's a deal, though I'll admit I haven't seen the new inside. (Of course, they also aren't showing any pictures of the new inside which generally does not bode well for the interior of a property.)

I will tell you that the "pro-painting" mentioned in the remarks are not enough to fix this house. The railings were messed up (and unsafe). The stairs were . . .yikes. The tile floors were very uneven. The master closet was very short and very weird (almost like they forget to put one in and then had to tack it on.) There was a huge window that was cracked. The basement had water in it. (It wasn't much, but I never like to see water in a basement.) The exterior trim around the garage needed help. I think there were some other things too, but I just don't remember . . .

It will be very interesting to see what this house sells for since a big reason we didn't even consider tackling the challenge is that this house faces HUGE competition from new construction. The flip better be very good . . . In the meantime, note that the owners did not follow the 65% rule (even if they spent NOTHING on the repairs)(see my last post) but even hard core flippers admit that rule can be violated - especially with upper end properties. Time will tell if this one can be termed a successful flip.

MLS 3123875

Kirsten Kemp, Property Ladder, and flipping gone wrong

2006-02-18T19:38:00.000-08:00

I'll admit I watch the flipping game reasonably closely too. Tonight's episode of Property Ladder (with Kirsten Kemp on TLC) was a re-run of a property flip in Texas that didn't go so well. What was really frustrating is that this couple, unlike 80% of the "first time flippers" on Property Ladder, didn't make a boatload of mistakes. They didn't blow their budget by $100,000 and then say "whoops, I guess we'll have to raise the asking price by that much." They didn't blow their timeline by weeks and months . . . Here's the problem they had: The deal was WAAYYY too skinny from the beginning. (I use that terminology only because that what the flippers seem to use.)

They bought for $117,000 hoping to sell for $140,000 (though they did raise their asking to $154,000 -- which was too much.) Even if EVERYTHING goes RIGHT you won't make any money in a deal like that. Moreover SOMETHING always goes WRONG! On the surface it looks like you'll make $23,000, but . . . subtract repairs and updates (for them $10,000 and that's cheap!) . . . subtract a 6% realtor commission to sell it (yes, you might be able to sell it yourself, but you can't count on that - $8400) . . . subtract carrying costs ($117,000*(.0775/12)*2 = $1511 and that's cheap) and that leaves a grand profit of $3000 after 8 weeks of intense labor IF EVERYTHING GOES RIGHT and remember Uncle Sam taxes any money you do manage to make as a short term capital gain.

True "flippers", people who buy/fix/sell all day everyday in any market suggest paying no more than 65% of after repair value MINUS estimated repair cost. IE, if the market will support a fixed up house at $250,000 and you need $30,000 worth of repair to get it fixed up enough that you can get that price, you should not spend more than $143,000. Is it hard to get a house at that price? You better believe it. That's why most novices are spending a whole lot more. In some markets they've been getting away with it, but this isn't California and this isn't 2004. The flipping game is going to be harder and flippers are going to have to play it smarter!

Home deal #1 -- price reduction

2006-02-17T20:26:00.000-08:00

Looks like home deal #1 is, indeed, at least a little bit motivated. It recently had another asking price drop. (I bet the sellers are REALLY unhappy about this weather . . .who wants to look at a house when it's -20?)

Home deal number 1?

Home deal 6 pending

2006-02-17T20:11:00.000-08:00

On the market for less than a week. I guess my comment that it wouldn't last long was correct. . . .at least I get it right sometimes :)

Home deal #6

The home anti-deal

2006-02-16T17:41:00.000-08:00

Have you ever heard that to recognize good you have to be able to recognize evil? Yeah . . . this is my example of the home anti-deal of the day/week/month/whatever. For a mere million dollars your 6 cars can all sleep well at night, but if you have a kid he or she will be sharing your bathroom and if you have two they'll be sharing a room with each other. Somehow I don't think knotty alder (whatever that is) makes it worth it. Oh, and did I mention it comes complete with hardboard/Masonite siding? BTW, if you're in the million dollar market and you happened upon this blog, wait until this Northwest thing shakes out before you buy. There may be lots of nice houses to choose from . . .

MLS 3152534

Home deal #7?

2006-02-16T07:31:00.000-08:00

MLS#: 3115762

So, what makes it a possible deal?
*Location, location, location. Backs on to a park and is a nicely wooded lot. Deck and sunroom back on the park/woods so I expect the room for bargaining on this house will start to disappear as soon as the trees start budding. It's in a neighborhood of expensive houses. Two of it's fellow cul-de-sac mates sold for the 360,000s last year. It's priced under its assessed value.
*It's weird. The sunroom that opens to the back yard is fairly small with tile floors. It's actually set up as a passive solar house, but they're not advertising any savings in utility bills (probably because they haven't thought of that.) There's only one bedroom up (even though there's also an office, it couldn't be a bedroom since it would egress to the second floor of the two story sunroom. There are two bedrooms down.
*Parts of it are a throwback to the seventies even though it was built in the eighties. However, the interior fixes would be pretty cheap if you insisted on them and they really wouldn't be necessary. The kitchen cabinets were actually pretty (as long as you can handle the darker wood color.) The other fixes were things like vinyl flooring and wallpaper. The carpeting looked basically new. The railing to the stairs was definitely not kid proof so that would have to be altered or changed completely if younger children were going to be around, but to be honest this house isn't really geared for young kids anyway (see bedroom comments above.)
*It's been on the market for quite awhile and has recently dropped $30,000. Looks like the owner is getting motivated and given the oddities of this house he might be willing to go lower.
*So, for the right person, this house definitely has room to be a DEAL.

Mansion Impossible -- real estate flipping game

2006-02-16T06:55:00.000-08:00

This game is kind of fun if you don't have the time, money, or market (notice that Property Ladder hasn't ever done a show in the upper midwest) to play the real flipping game. It's not realisitic and it requires a reasonably fast computer/internet, but if you have 10 minutes to kill it's kind of fun.

Mansion Impossible

Your new house and your FICO score

2006-02-15T09:01:00.000-08:00

Thinking about buying a house? Your FICO score is one seemingly insignificant number that means everything!! Here's some nice background on how your FICO score affects you and how it's calculated.

How credit scores work, how a score is calculated

Home ownership - a great investment

2006-02-14T07:14:00.000-08:00

Here's a nice article by David Bach. (Feel free to skip the commercial in the beginning.) It's basically just a rehash of the benefits of home ownership (leveraged money, tax advantages, etc.) , but it's good to be reminded. The kicker? Home owners are 34x wealthier than renters . . . .

Why Homeowners Get Rich and Renters Stay Poor: The Automatic Millionaire

Home deal #6

2006-02-12T13:01:00.000-08:00

MLS 3150297
*What makes it a deal? Well, 3 bed, 3 bath in a nice part of Apple Valley doesn't go for prices like this.
*Eastview HS
*Estate sale
*$20,000 under assessed
*If you're interested act quickly. I doubt this one will last long. One thing though . . .electric heat?? That's a typo right???

Your house, your spouse, and the "cute factor"

2006-02-10T20:38:00.000-08:00

Whether it's other people, puppies, or houses, most people have a natural attraction to cute things. Cute people get more dates. Cute houses get more money. Hollywood is full of examples of very cute people, who are initially very attracted to each other, who then decide that maybe cute wasn't enough. The same can happen with home ownership. Here are a few things to consider when trying to get beyond the "cute factor".

1) Sometimes a great house is obscured by a not-so-great exterior. Let's face it, how much time do you spend looking at the outside of your house? Like with long-term relationships, it's the inside that counts. For example, split levels are almost always cuter than ramblers, but the moment you have a sprained ankle or a C-section you'll give up a lot of "cute" to avoid a few stairs.

2) Flippers love UGLY houses. Why? Because they're cheap and often they can look a lot better with just a little work. You know those makeover shows where some different clothes, a little makeup, and a haircut make somebody look a lot better? Sometimes the same goes for a little paint, a little carpet, and a few well placed bushes.

3) What's "cute" changes. In the 1970s harvest gold and avocado green were the ultimate in cute. In ten years will we be looking at stainless the same way we now look at harvest gold? Probably. Are you willing to pay a premium for cute when the standards are bound to change?

4) You change. Have you ever looked at a picture of yourself in the eighties and asked yourself "what was I thinking?" Have you ever realized how incredibly attractive somebody was only AFTER you got to know him/her? Sometimes you have to live with the "ugly" brown carpeting for awhile before you realize how well it works.

5) Are you ready to maintain the cute? Lots of times cute takes work. Keeping up with the flower boxes and making sure the deck get painted every year . . . Some houses are so cute they're like the person who needs $100 a month worth of haircuts and highlights. That's fine if you value that and have the money, but those costs need to be a factor in your decisions.

When it comes to buying a house, "cute" is an important factor, but it's only one of many. Don't let your initial "cute" or "not cute" emotions overrule everything else.

Home deal #5?

2006-02-10T06:48:00.000-08:00

Here's another house that's probably right for somebody . . .somebody that doesn't care too much about location . . .
MLS 3062277
So, why might it be a deal?
*Here's another one that's been on the market a long time, but has very recently had significant price drops. Often that's a sign a seller has suddenly gotten motivated.
*It's not cute from the outside. Really. It's not. If you look at the picture though, a few well placed bushes could make a lot of difference. BTW, I think that ugly turret looking thing is a bedroom. (#4 on the main level. You don't find that in ramblers very often!)
*The location really really wouldn't work for me. (Backs on to a frontage road for highway 13.) However, it might work for somebody.
*Now, that being said, there are some nice things you don't usually see at this price including newer windows, some newer siding, newer kitchen, newer floors, and some new appliances. The inside actually looks pretty cute. (Most of the time houses in this price range say lovely things like "as is", "corporate owned", or "need TLC". I think this is probably a pretty nice house in a location that . . .is right for somebody . . . .

Nice real estate site and browsers

2006-02-09T07:20:00.000-08:00

Okay. First things first. If this site looks really bad on your screen you're probably using Internet Explorer. We're working on doing something to fix that, but in the meantime if you have Firefox or Safari give that a try.

Speaking of browsers, this site, Zillow.com is totally cool, but, at least if you're on a Mac, it only supports Firefox. It's only been up for a day or two and it still doesn't have too much for Dakota county, but it's getting there! Eventually they're hoping to provide all sorts of home valuation data from all over the country. For now Dakota county only has tax data, but the way it's displayed is easier to read than the Dakota county site.

Weird enough to be deal #4?

2006-02-08T11:07:00.000-08:00

This one is . . . I have no idea . . .
MLS 3130197
So, why might it be a deal:
*It's a foreclosure.
*I don't think most flippers will like it because it's more expensive than most of the homes around it (though not extremely so.)
*Trying to sell a house with an inground pool and a outdoor hottub in the winter in Minnesota with no disclosure and "as is" is going to be challenge I would think.
*Last sale was 1/2005 for $300,000 -- $50,000 more than what the listing price is now.
*I'd be very wary of the stucco (with its known issues), but this house is from the 1950s, not the 1990s when stucco was such a problem.
Anyway, it might be interesting enough to look even if it's not a genuine deal :)

The internet is changing the role of real estate agents

2006-02-08T07:07:00.000-08:00

The two sites featured in this NYT article don't deal with MN real estate (my guess is that we're just not a hot enough market -- why launch here?). However, they probably do show that the future of real estate is going to be much more web based. I'm also glad that the info. available to "agents only" will soon be available for all. I'm all in favor of home buyers making informed decisions. In the meantime, you can get a lot of info. on houses in Dakota County (a several other counties if you Google them) at: Dakota county assessors This site will let you look up all sorts of things including last sale date and price, foundation square footage, owner's names, exact location, homestead status, etc. Lots of fun stuff. (BTW, the house doesn't have to be on the market for this information to come up.)

2 Web Sites Push Further Into Services Real Estate Agents Offer - New York Times

What causes houses to go "on clearance"?

2006-02-07T18:15:00.000-08:00

If you've read any of this rest of this blog you'll notice that basically I'm highlighting properties that either are "on clearance" or at least show some characteristics of being "on clearance". Why should anybody care? Doesn't that just mean that nobody else wants the house? Well, maybe, but when you shop on clearance at Kohl's or Target (or wherever you shop) is that what you assume? You should because that's the truth. The reason any store puts anything on clearance is because they couldn't get the price they wanted for it. There are a few reasons this happens: 1) Too much inventory. Sometimes this happens with houses too. There's nothing intrinsically wrong with any of them, it's just that right now in this particular spot supply is greater than demand. Hence, the price comes down. 2) Wrong season. Trying to sell snowblowers in May isn't going to work very well. So, you can either store them until November or put them on clearance. Same with houses. Houses in MN generally don't sell very well in the winter. So, people who can't afford to live in them until spring sometimes put them on clearance in the winter. 3) It's ugly. It happens with clothes and it happens with houses. The buyer just truly has to know what they can live with or fix and what they can't. 4) It's broken. A $20 shirt will easily be dropped to $7 if a button is missing. Sometimes the same thing happens with houses. 5) The sizes are wrong. There aren't very many people who wear a size 2, especially if the style runs small. Sometimes houses that are inappropriately sized will go on clearance. The question is what size are you? If there are only 2 of you and your children are grown you probably don't need 4 bedrooms and 3 bathrooms. Moreover, if you can live with one bathroom you might really be able to get a deal. It's really important that you not buy the wrong size though. Even if a shirt is really cute and really cheap you'll never wear it if you can't get it buttoned. 6) There are a few more things that cause houses to go on clearance that aren't as clear in the retail world: A) Impending foreclosure B) House is part of an estate C) House has been foreclosed upon D) House is subject to a short sale. E) Sellers have already relocated. F) Sellers need to close fast for one reason or another. Notice that most of these things don't necessarily say anything about the property, just about the motivation of the sellers. So, sometimes these kind of things can make for a deal!

Home deal #2 is basically sold

2006-02-07T14:24:00.000-08:00

Wow. I guess that's the problem when dealing with houses "on clearance". They tend to sell fast. Despite the "active" listing, home deal #2 is sold pending final inspection which either occured today or will be occuring very soon.

Home deal number 3?

2006-02-07T07:43:00.000-08:00

Okay, remember these are deals for somebody (in this case definitely not for me). Just to show I really do look beyond ISD 196 and the mid 200's, here's a possible deal on an newer, nicer house in Lakeville (for the mid 400's).

MLS 3142021
What makes it a possible deal?
*Newer house in nice development has been on the market for an awfully long time and has come down $125,000 in the process. Can we say overshot the market? Anyway, as Kirsten Kemp has said on Property Ladder, if you overshoot the market initially it's hard to come down fast enough before your property is old and stale. I think that might be the case now. Anyway, the owners probably aren't looking at making much of anything at this price and it's now marketed under its assessed value.
*Nice landscaping doesn't show up in pictures. (Probably because the agent is trying to hide that it's been on the market forever, but now it looks like mid winter Minnesota yuck instead of the showpiece it could be.)
*Pictures are out of focus. Ummm . . .yeah . . .the agent should fix that.
*Has an "outdated" kitchen. I can't believe I'm saying that, but many people looking at newer homes are looking for granite and stainless. For those people this great kitchen is going to look "sooooo 2003". BTW, I personally think granite and stainless will go out of fashion sooner and harder than the more neutral finishes in this kitchen, but what do I know?
*It now has competition on the same street and at these prices I'll bet neither one can afford to make two mortgage payments for very long. . . . Hence, a possible deal.

Home deal #2?

2006-02-05T19:53:00.000-08:00

To be honest I have no idea what's going on with this property, but it's weird enough to capture my interest. Things that might make it a deal:
MLS 3146060
*Nice location! Backs on to pond and park. Cul-de-sac. Surrounded by expensive homes.
*Asking price is under assessed value.
*Been on the market forever, but suddenly has dropped $30,000. Do I sense a wee bit of seller motivation here?
*Original owners. "As-is". No signs of funeral or foreclosure. No interior photos. What does this mean? To be honest, I dunno. My guess? The house is outdated and possibly a mess. It's also possible the owners just don't what pictures of their living space out where the world can see them. Either way, there might be room for a deal.

Home deal number 1?

2006-02-05T12:53:00.000-08:00

One of the purposes of this blog is to point out real estate (particularly single family homes in the south metro of Minneapolis/St. Paul) that I think will be "a good buy for somebody". I'm currently trying to find a home appropriate for my in-laws to move into, so I've been looking at A LOT of listings and even quite a few houses. Occasionally I come across a house that's wrong for them, but has got to be right for somebody. So, maybe you're that person? Remember I'm not a realtor nor do I play one on TV. (Watch Kirsten Kemp on Property Ladder or Ginger Alexander on Flip This House or any one of a number of fun real estate shows for that :)) I just need something a bit more intellectual (note I didn't say challenging) than potty training my toddler (potty training is challenging enough) so . . . this is it. Read at your own risk and by all means do your own due diligence! Right now I have a backlog of bargains to talk about since this blog is new, but, in no specific order, Deal #1

MLS 3131892
Why I think it might be deal:
*Nice neighborhood in ISD 196. Eastview HS.
*It's a rambler in a area full of split levels. Personally I think ramblers are going to become more popular (and therefore pricier) as the baby boom ages. I'm betting lots of boomers aren't really for assisted living but would find a lack of stairs appealing.
* I think it's going to be in a "race to the bottom" (price wise) with MLS 3130149. They're geographically close to each other. Both are ramblers. I'm betting both are looking for a quick close ("flexible closing" often means that) and both have had significant price reductions in a fairly small amount of time.
*The agent evidently had a hard time with the exposure levels of his/her camera because the main picture makes it look horrible! (The link below is to the same house, but a picture taken in the summer with much better lighting.)
*The agent included a picture of a bathroom, but not of the kitchen. What does this tell me? The kitchen probably hasn't been updated. That's a SERIOUS detractor for most home buyers, but not for those looking for bargains. (BTW, if you ever need appliances or even cabinets, check out minneapolis.craigslist.org. You'd be amazed what people are practically giving away!)
*$1000 carpet allowance and wallpaper. Again more updating needed. A serious detractor for many buyers, but if you're willing to strip some wallpaper and pick out some carpeting it makes for a good deal.

Smart Investing Amidst Real Estate Mania

2006-02-04T13:27:00.000-08:00

I'll be the first to admit I'm not a huge fan of everything Robert Kiyosaki (of Rich Dad, Poor Dad fame) says, but this article makes sense. Here's the problem though . . . people determine whether prices go up or not and if 90% of the people are investing "unwisely" they'll still control the market. Maybe not forever, but for how long?

Smart Investing Amidst Real Estate Mania: