Archive for December, 2012

Minneapolis Duplex Sellers Celebrate Early

said on December 19th, 2012 categorized under: Twin Cities Real Est

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Red gift box with white ribbon and bow.I have to tell you, it’s hard to sit down and blog with all of the holiday festivities.

The season hasn’t seemed to slow Minneapolis duplex, triplex and fourplex sellers and buyers though.

For the week ending December 8, 28 multifamily property owners received and accepted purchase agreements on their properties. Of them, just 28.6 percent were traditional sellers. As a result, the average list price the duplex left the market at was just $130,150.

During the same week last year, just 13 Minneapolis and St Paul investment property sellers accepted offers.  Of these, 30.8 percent did not have to consult with a bank in order to sell. Those sellers realized an average sold price of $108,240.

Duplex sellers made buyers happy by putting a whopping 31 new listings on the market. The vast majority of these listings, 61.3 percent to be exact, belonged to sellers with equity.

This trounces the number of new listings during the same week last year, when there just 24 hot new duplex listings to choose from.

Like the small multifamily market, the single family home market saw a slight increase in new listings, up 3 percent to 942 for the week. Pending sales also rose 12.6 percent, with overall inventory down 28.8 percent.

Let’s hope Santa brings continued good news for Minneapolis duplex sellers and buyers.

Why Minneapolis Duplex Sellers Are As Jolly As Santa

said on December 11th, 2012 categorized under: Twin Cities Real Est

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minneapolis duplex sellers on santa's nice listThe holiday season has Minneapolis duplex sellers feeling like Santa’s favorites.

After all, for the week ending December 1, 2012, the average final list price pending sales of Minneapolis and St Paul duplexes, triplexes and four unit buildings at was $46,796 higher than similar properties sold for one year ago.

Granted, on average, Twin Cities real estate sellers are receiving 94.3 percent of their list price, so that number will be down some when sales close.

Nonetheless, it is great news for duplex sellers.

Most of these people, 57.1 percent of them to be exact, are traditional sellers with equity in their properties. This is up from the 42.9 percent of sellers who could say the same during the week in 2011.

This trend promises to continue, as new listings continue to be as scarce as a Master-Moves Mickey. There were just 22 new listings for the week; down three from the count last year. Of these new investment opportunities, 40.9 percent were brought to the market by traditional sellers. This is a leap from the 28 percent who did so last year.

Single family home sellers also experienced a holiday rush as pending sales rose 18.6 percent for the week. In all, there are 29 percent fewer homes on the market than one year ago.

The .7 percent increase in new listings for the week offered some hope for home buyers, but clearly not enough to loosen what continues to be a tight supply of inventory.

This leaves Minneapolis duplex shoppers little choice but to ask Santa for more inventory.

Turkey Slows Minneapolis Duplex Sales

said on December 4th, 2012 categorized under: Twin Cities Real Est

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Roasted turkey feastHolidays always mess up logic when it comes to Minneapolis duplex sales.

There were 12 duplexes newly listed for sale during the week. Most of these were being sold by banks, as just 33 percent belonged to traditional sellers.

There was a similar pattern one year ago as well, when there were 17 duplexes offered for sale, with 35.3 percent belonging to traditional sellers.

Turkey and travel didn’t seem to slow duplex buyers, however, as 14 sellers accepted offers on their properties. Of these, just 21.4 percent were traditional sellers.

Fourteen pending sales may not seem like a lot, that is until you realize it’s double the number of duplexes, triplexes and fourplexes that sold during the week last year. The difference, however, is 57 percent of those successful sellers had equity in their properties.

Single family home buyers continued to gobble up inventory during the week, with pending sales up 12.8 percent. New listings were also up, though it was an increase of just 0.7 percent.

In all, the total Months Supply of Inventory is at a skinny 3.8, which means it is a sellers market. A real estate market is considered balanced equally between buyers and sellers when there is a 5 month supply of inventory.

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duplex owner liability for tenants dogsI love dogs.

And I believe there’s no such thing as bad dogs. Just bad dog owners.

However, many insurance companies don’t share my point of view; especially when it comes to Pitbulls and Rottweilers.

According to Matt Peterson of Farmers Union Insurance, many companies won’t offer a policy to a duplex owner who has tenants with Akitas, Chow Chows, Pitbulls, Rottweilers or Wolf hyrbrids.

And if they do, they may exclude liability coverage for dog bites.

In other words, if a tenant’s dog bites a neighbor, the duplex owner could be sued. And that could cost that property owner everything.

So what if, when applying for insurance coverage, you simply answer “no” when the insurance agent asks if any of the afore-mentioned breeds are on the property?

In the event of a dog incident, you could be found guilty of insurance fraud.

I realize this doesn’t seem fair. I’ve known wonderful, trustworthy dogs of every breed.

And yet, is it fair for a property owner to be held liable for a tenant’s dangerous dog?

Probably not.