Indian Hills and Indian Trails in Edina

March 9, 2023March 9, 2023 MaryLeave a comment

If you’re looking for something a little “extra” in your next home, you might be interested in taking a look at these neighborhoods in Edina. Some amazing homes and lots of variety in architecture from traditional to very modern on huge wooded lots. The location can’t be beat either!

A video tour of Indian Hills and Indian Trails

WHERE IS INDIAN TRAILS / INDIAN HILLS?

Indian Trails & Indian Hills are residential neighborhoods located in the city of Edina, Minnesota. They are located in the southwestern part of the city, near the border with the neighboring city of Eden Prairie. The neighborhood is bounded by Highway 169 to the west, Rt. 62 to the north, roughly the high school to the east, and about Valley View Rd to the south around Braemar park.

Indian Trails is located approximately 13 miles southwest of downtown Minneapolis and 11 miles southeast of the Minneapolis-Saint Paul International Airport (MSP). Commuting to downtown Minneapolis or the airport from the neighborhood is relatively easy, thanks to its convenient location near the major highways of 169 & 494, along with easy access to 100, 62 or 35.

The neighborhood is located just west of Highway 169, which provides direct access to downtown Minneapolis. Commuters can reach downtown in approximately 20-25 minutes by car, depending on traffic conditions.

The airport is also easily accessible from Indian Trails, with several transportation options available. The fastest option is to drive, which typically takes around 16-25 minutes depending on traffic. Additionally, if you wanted to park and take the METRO Blue Line light rail system, it provides direct access to the airport from the nearby Mall of America station, which is approximately 8 miles from Indian Trails. The journey from the Mall of America to the airport takes around 12 minutes. Finally, there are also several taxi and rideshare services available in the area, which can provide convenient transportation to the airport.

WHY LIVE THERE?

Indian Trails / Indian Hills area is known for its large, wooded lots and quiet streets. Many of the homes in the neighborhood were built in the 1950s and 1960s, and feature traditional architecture and well-manicured yards. Some of the homes in the neighborhood are valued at well over $1 million. The median sales price in this area is $982,500, well above the median for the Twin Cities metro, so a little “spendy” as the Minnesotans might say, but if this is in your budget it’s worth looking at, and if it’s NOT, it’s fun to look at the homes anyway! 🙂

If you want to learn about other neighborhoods and suburbs of the Twin Cities, check out my YouTube channel – I have an entire playlist of them that I add to regularly.

One of the things you’ll note about this area are the mature trees, the hilly landscape, and the curving roadways that give this neighborhood a sense of being nestled away from the suburban bustle, even though it has easy access to everything you might want. It definitely has a quiet, secluded and cozy feel.

Parks

The Edina area is home to several parks, including the 29-acre Arden Park, which features trails, picnic areas, and sports fields. But the closest is nearby Braemar Golf Course and Braemar Ice Arena which provide opportunities for golfing and ice skating, respectively.

Braemar Arena has three sheets of indoor ice and one outdoor seasonally.

The Braemar Golf Dome is the largest and longest-hitting indoor practice facility in the Twin Cities with 44 tee areas on two levels.

If you’re not a golfer, it also has an almost quarter-mile turf track which is open from the beginning of November through the end of April under the dome.

I’m not a golfer, and not a mall walker, sometimes you just want a place to stretch your legs that is “semi” outside feeling but without the risk of breaking your neck or your leg on icy sidewalks.

The track is free and open to the public. Make sure you wear layers as the facility maintains a temperature 40 degrees above the outside temperature. That sounds kind of toasty when it’s 35 degrees out, but maybe not as much when it’s below zero? You are allowed to use a stroller if you want to bundle up your little and walk.

Schools

Indian Trails is located within the Edina Public Schools district, and is served by Creek Valley Elementary School, Valley View Middle School, and Edina High School.

Shopping

Indian Trails is located near several shopping destinations in Edina and the surrounding areas. Here are a few options:

Southdale Center: Located approximately 5 miles north of Indian Trails, Southdale Center is a large indoor shopping mall with over 100 stores, including anchor tenants like Macy’s, JCPenney, and AMC Theatres. It takes up a large area between York & France Aves just south of 66^th street. You’ll also find store like Target, whole foods, Lunds and Byerly’s groceries in this area. Trader Joes and Total Wine & Spirits is just south of this area at France & 494. In addition there is some upscale shopping all along France including inside the Galleria Mall.

Another option is to head about 6 miles west to Eden Prairie Center. Eden Prairie Center is another large indoor shopping mall with over 90 stores, including anchor tenants like Von Maur, JCPenney, and Target.

If you like an outdoor shopping area that is easy to navigate on foot, check out the intersection of 50th & France approximately 4 miles northeast of Indian Trails. It is a popular shopping district in Edina with a mix of independent shops and restaurants. In addition there is a small independent movie theater (The Edina Theater) that has recently been updated and is a real contribution to the area if you like movies and are also interested in seeing some of the smaller films that may not be blockbusters. Located in the same area is another Lunds and Byerly’s grocery.

Libraries

If you need your Public Library fix, the neighborhood is located almost exactly equidistant from the Eden Prairie Library just west of 169 across the street from the Eden Prairie Mall. It’s convenient if you’re running to Target over there or grabbing a bite at one of the many restaurants nearby. I believe that this library recently had a fairly significant update, and it was pretty nice to begin with! This is not a small library, but one of the larger libraries in the Hennepin County library system.

Eden Prairie Library:

Edina Library

The other options are the Edina Public Library which is just west of 100 where it crosses 50^th street, also a lovely building that is a pleasure to spend time in or the 3^rd option in Edina is the Southdale Library on York. This may be the only time you hear me say anything negative about a library, but I am not a fan. It’s pretty ugly, it doesn’t feel like a place I want to spend time. It harkens back to the earlier days when it was paired with a court building. Something about that doesn’t fit well. I dare you to disagree with me … THIS is the Southdale Library. (thumbs down).

They had planned to move this library into an empty department store at Southdale Mall before the pandemic, and then shelved those plans. I thought that was an innovative way to fill a large empty anchor spot at that mall and draw more people over there. While we are talking about that mall, it hosts a fairly new edition in the form of the LifeTime fitness health club. This place is a palace, with restaurants, co-working space, pools, soccer fields, spa, tennis and pickleball courts etc.

This mall also has the closest Apple Store in case you need some help or a new piece of tech. However, a library in there wouldn’t hurt. 😉

Overall, Indian Trails is a highly desirable neighborhood in Edina, known for its peaceful surroundings, natural beauty, and strong sense of community.

Do you have another community that you’re interested in? Drop a comment down below and I will add it to my list – I love getting content ideas from people that read my blog or watch my videos because it helps me give you what you’re looking for!

Home Buying

You have interest rate options!

October 28, 2022October 28, 2022 MaryLeave a comment

You’re not helpless when it comes to mortgage interest rates! A lot of buyers are concerned about monthly payments now that the interest rates have gone up.

I talked with Chris O’Connell at Loan Depot about 4 options that home buyers have to pay a lower interest rate and therefore a lower monthly mortgage payment. Chris had one that was surprising to me and we talked a bit about the one that seems to be getting a lot of attention in the real estate world right now, the 2/1 buy down and why that may not be the BEST option.

Take a look at this video interview if that is something that is worrying you as you think about buying a house now.

What is an “appraisal gap”? and why does my agent keep talking about covering it?!?!

March 11, 2022March 12, 2022 MaryLeave a comment

Does the phrase “appraisal gap” strike terror in your heart? Or leave you scratching your head? What about hearing tales of “appraisal guarantees” that are often needed when you’re a buyer in this seller’s market? If you’re a buyer or seller and you’re not spending every waking (and sleeping!) moment thinking about the real estate market, you may be confused about what these terms mean for you, and they may feel a little scary. Knowledge is power, so let’s talk about what an “appraisal gap” is and what an “appraisal guarantee” means for a buyer or a seller.

If you’ve watched any of my market update videos you’ve heard one thing reiterated and that is that we are in a historically strong sellers market. We have a lot of buyers competing for every home and that means that we nearly always have multiple offers and those offers are often for well over list price as buyers do whatever they can to beat the competition.

On the surface you may wonder “how can that be a problem”? if you’re paying with CASH it’s not a problem, you can pay any price you choose to pay for something as long as you can show that you have the funds available to do it. This is a big reason why cash buyers have an advantage right now, the price is the price and the seller doesn’t have to worry about the bank’s appraised value.

However 80+% of people are NOT cash buyers, they have to get a mortgage for their home purchase and as part of that loan the bank will hire an independent appraiser to look at the property and determine if it’s worth the amount they are loaning you for it. They don’t want to be stuck with worthless collateral to sell if you default on your loan. This evaluation of value is called an “appraisal”.

Sometimes your mortgage lender’s appraiser says the house IS worth less than you agreed to pay. This is known as an appraisal gap or a low appraisal.

I sometimes hear buyers with high loan approval amounts suggest that it might be a good strategy to buy a lower priced home and just throw a large amount of money at it because they can qualify for a loan of that size, but that still doesn’t eliminate the issues around homes appraising for the value of the loan. And really, appraisals exist for this very reason.

Options as a buyer

What are your options as the buyer if you’re worried that the appraisal will come in lower than what you have offered? after all – Sellers want to get the price you’ve offered in the contract whether or not the appraiser says it’s worth that amount as loan collateral.

The option that has been most successful with sellers is writing appraisal gap coverage or an appraisal guarantee into the contract for the purchase of the house. We are seeing this happen about 45% of the time now and it is getting to be more common as the market continues to be tight.

What this essentially means is that you will put a larger down payment on the home which bridges the gap between what you’ve offered and what the bank is willing to loan and preserves your ability to finance the purchase and close on the home.

A typical home purchase contract has an appraisal contingency: wording that says the buyer can call off the deal if the property appraises for lower than the buyer offered. But in hot real estate markets, where buyers outnumber sellers, some buyers waive the appraisal contingency. These buyers either pay cash for the home or gamble that they have money to pay the difference between the appraised value and the price, however much that may be.

rather than waiving the Appraisal contingency entirely, offering to cover the gap on a low appriasal is the middle path. You’re offering some amount that you will make up via a larger down payment.

Take the example of the $120,000 offer on the $100,000 home that has a $10,000 difference between the purchase price and the appraised value:

If you had offered to cover an appraisal gap up to $10,000, you would proceed with the purchase, bringing that extra $10,000 as a larger down payment.
If you had offered to cover an appraisal gap up to $5,000, you would be entitled to withdraw your offer and get your earnest money deposit back. That’s because the difference between the offered price and the appraised value is greater than the $5,000 appraisal gap coverage.

At this point, the seller may wish to negotiate with you to keep the transaction in tact and they may agree to lower the price by the remaining $5000.00 difference, or they may choose to go to the next buyer.

You’re more likely to succeed when offering appraisal gap coverage if you include proof of funds to do this as well.

If you’re lucky, you may not have to worry about appraisal at all. The bank may waive the required appraisal if they can see market conditions support it and that the buyer is bringing 20% or more as the down payment. This means that they look at the market data and determine that the property is likely worth the purchase price, but you will not know this until you’re closer to closing.

Things to think about

A couple of things to add as you consider whether or not to do this on your next purchase agreement:

Think about the home you’re buying, it’s condition, price, and location and what you’re willing to do to purchase that home. You want to be doing this for a home that will hold or appreciate in value.

Because of the market conditions, home prices nationally increased over 14% year over year. Median home prices in Minneapolis and the Twin cities went up 10.9% year over year according to the Minneapolis Area Association of Realtors.

Put that into perspective with your purchase.

If you are buying a home priced at $100,000 today and prices continue on their current path, that home would be valued at $111,000 a year from now.

If you’ve agreed to make up $5000, or $10,000 in low appraisal, the likelihood that you will be “whole” in a short period of time is there.

Another consideration is whether or not you will be able to afford a home in a year or two if this continues and if interest rates continue to rise.

So, it’s a math problem. Never been a big fan of math problems, but looking at it this way really adds some clarity and perspective.

Reach out with questions! I’m always happy to help.

Home Buying · home selling · market updates

Minneapolis Real Estate Market Update Feb 2022

February 28, 2022 MaryLeave a comment

A month goes by in a hurry it seems, so here we are! Did a month make a difference with the real estate market? YES. It is notably busier!

Click here to watch. 🙂

I don’t think I’m telling you anything you don’t already know, but the real estate market is on fire. Someone hit the gas pedal on the housing market in February and they have a lead foot. What does this mean specifically? Let’s look at the twin cities housing market as of Feb 18 2022.

signages for real property selling — Photo by RODNAE Productions on Pexels.com

If you are a seller – LIST NOW and you’ll be partying all the way to the bank.

Just about every listing is getting multiple offers in the first couple of days. The supply of buyers is so great and the supply of homes is so low right now – 15% fewer listings on the market than last year at this point!

Why are sellers hesitating? I assume that it’s because they are worried about finding THEIR next home. As an agent that represents a lot of buyers, I can tell you that sellers can not only command great prices for their homes they can still get a closing date that suits their needs. For example, if a seller is considering putting their home on the market, but are worried it will be gone in a blink, there is a great likelihood that the seller can ask for and receive a 60 close, flexible closing, or recently I’ve seen them asking for a seller’s home purchase contingency or lastly a rent back situation after closing remembering that most conventional loans require the transaction to close in 60 days on the buy side so no long term rentals this way! but this way the seller will have cash in hand and be able to buy while also have a roof over their heads while they wait for their next home to be available.

One of the things that I really like about real estate is that EVERYTHING is negotiable – as long as the parties work it out (within the law!) and get it in a signed contract, the parties can work together to find a solution that works for everyone. Do you have a creative way to structure a contract that lets everyone get what they need? Bring it up and there may be a way to make it work out!

This past week we had offer acceptance rates at 15%, which means that sellers are receiving 6-7 offers on average. But the average for the month is hovering around 35% according to Home Free Transaction Coordinators. I’ll give you more info on what they see in a successful offer after I take you through current market conditions.

Absorption rate

It’s a seller’s market, but to what degree? In the past I’ve explained that the way that we determine this is based on the absorption rate or how many months worth of housing inventory we have at a given time if nothing new were added to the market. 5-6 months is considered balanced, more than that is a buyer’s market and less is a seller’s market. Obviously the more extreme the number the more it favors one or the other. That obviously varies by housing type.

Single family homes have a .56 months (about 17 days) supply now as compared to one year ago when they were at .62 (about 19 days). We have started this year off with available inventory down by 21% year over year. New listings this month are down by 15% from last year.

I was looking for a bright spot and looked at new construction. Builders are responding to the need for houses and have started increasing their production too.

This image shows the big dip and now the increase starting in single family new builds between $400 & $600K. Its not dramatic, but any amount helps – if you have 50 more houses that’s 50 buyers that have found something.

If you have been thinking about selling and are curious about what your home is worth today, let me know. I’ll give you a free estimate of what your home is worth today – absolutely no obligation, just for your information if you want to know – just send me an email. We need homes and now is definitely the time to get the maximum amount of money out of your sale! mschumann@kw.com if you’re curious. I’m happy to do it.

Townhouse/ Condo properties are at .97 months (29 days) vs 1.13 a year ago (34 days). Prices on Townhouses are at a median of $267,000 which is UP 12.2%. Average days on market for a townhouse is down 26% to 14.

Condo prices are at a median of $195,000 up 6.6% from last year and are on the market for about 30 days. If you are a first time buyer or someone that likes condo living, this is the softest spot in the market today and your biggest opportunity.

Single family homes in the 14 county metro area have a median price of $370,000, a gain of 12.1% year over year. They are on the market for NINE DAYS. Only about half of what we saw a year ago. And don’t fool yourself thinking you have 9 days to think about it, this is a listing going live on a Thursday, showing through the weekend, closing offers on Sunday and allowing a 5 day inspection period before heading to pending.

The combined absorption rate (all property types) is at .67 months or 20 days of inventory as opposed to one year ago when we had a whopping .75 months or 22 days of inventory.

What can you do if you’re a buyer?

Here are my suggestions and strategies:

1.my office posts properties to agents internally that are off market and that sellers are willing to part with before going onto the MLS, so having that network available helps a lot!

2. make sure you see what is available in “coming soon” and get in there quickly

3. even better if you have the nerve- offer “sight unseen” while in this status. if the seller will do it, you can usually negotiate an inspection this way and if there is something wrong with the property get out of the contract without losing your earnest money, this does require a good offer out the gate. It’s not a way to get a bargain, but is a way to quit losing in multiples.

4. make your offer more appealing are to offer appraisal gap coverage. This means that if you are financing you are stating that you have the ability to make a larger downpayment in order to cover the gap between your offer and what the bank is willing to loan you, having cash is a very important piece of the puzzle in this environment. You can offer any amount of appraisal gap coverage – it doesn’t have to be 100% of the difference!

5 Look at “wallflowers” these are properties that have been on the market for longer than 4 days. This means they have made it through a weekend without getting an offer and may be more willing to negotiate or look at a reasonable but not extreme offer. These can be homes that a buyer got cold feet on, that their financing fell through or other scenarios.

6. Don’t ignore properties that need work! You can get a home loan that rolls a remodel into it. Not everyone can look past a dirty unfinished basement but it’s rarely a bad investment to add finished square footage to a house – especially in an in demand neighborhood.

7. Do you have time? Offer on new construction. You eliminate multiple offers and choose your finishes. Just be aware that contracts allow builders to cancel your contract if the price of materials goes up and you can’t cover the increase. Don’t get yourself in too deep.

8. There aren’t a ton of these available but spec houses are a good option. They may be completed new builds OR they may be nearly completed with an estimated move in date already.

9. my last option coming to mind to look at loans that allow you to offer as if you’re offering CASH – without a financing contingency. This seems like a HUH??! moment, but in my video next week I’ll interview a lender with a program like this that may give you a leg up and I’ll post it here, of course!

Accepted offers

OK – lets look at what’s been going on with offers per HFTC:

Buyers are waiving inspection 46% of the time, this is a lot, but that also means that 54% of the time they are getting an inspection.

Off market sales are at 12% – this is the “private listing network” that I mentioned where agents that have upcoming listings market them internally first.

Sales Contingent on the sale of the buyer’s home is down to 5% of the time.

Average sale to list price is 103.2%. I don’t know where these are happening because my buyers have been offering at 15% over and losing… We would be happy with 103%!

Cash is at 17% of offers, Conventional at 69%, FHA has ticked up to 5%, VA is at 0.

Hey! I would love to hear from you in a comment or an email or a smoke signal … reach out if you have questions!

Neighborhood Tours

New Hope!

July 16, 2021 MaryLeave a comment

Another surprising community! Today I’ll show you around New Hope MN and give you all the reasons you may want to consider living there.

Lately I’ve been working with several first time buyers, and if you remember buying your first home you probably didn’t have a massive pile of money for a down payment as many people who may have equity from a sale do, so you have to look for a starter house in a more affordable neighborhood.

That’s where New Hope comes in! A quick look at what is on the market right now illustrates my point – there are 30 active homes in New Hope ranging from a 1 bed 1 bath condo for $115,000 to only a few homes in the mid-upper $500’s with MOST homes being single family homes in the upper $200,000’s to mid $300,000’s. The MEDIAN price in New Hope is at $309,000 whereas the Twin Cities Median is at $380,000.

If you’re an investor and want to rent out a residential property you must register the property with the city.

In addition to single family homes and people just starting out in life, New Hope makes senior living a priority as well. They have 3 long term care facilities, some assisted living complexes and senior citizen apartment homes.

elderly couple holding bouquet of flowers while holding hands — Photo by RODNAE Productions on Pexels.com

Let’s talk Property taxes… New Hope is in Hennepin County, the effective property tax rate in New Hope is 1.35%. Hennepin County’s portion is 1.28%, the effective tax rate for the state of MN is 1.08%. Sales taxes since I looked this up as well – MN has a sales tax rate of 6.88% on everything except (I believe!) food, prescriptions and clothing, and the sales tax rate in New Hope is 7.13%.

tax return form and notebooks on the table — Photo by Nataliya Vaitkevich on Pexels.com

The beauty of New Hope is not only the affordable home prices, but that New Hope is actually a really lovely community and it has a lot to offer.

New Hope is an easy commute to downtown or the airport. It’s only about 20 minutes by car to downtown. and Because I’m such a fan of our regional parks I also want to point out how close New Hope is to the beautiful Theodore Wirth Park. I touched on this park in my Golden Valley video (which you can watch next!) but Theodore Wirth really has it all. It’s just gorgeous, and can keep you busy outside no matter what season we’re in.

If you are leaving town or going to fetch a visitor, it’s about 26 minutes to MSP airport and while you’re down there you can stop by the Mall of America and get your shopping done or amuse the kids on the roller coasters. I was a major skeptic because I am not really a “mall person”, but I like “The Mall”! It has so many great stores that you don’t see everywhere else, some nice food options and my kid and I had fun doing some of the rides the first time we stopped in. Being close to it is nice because it can just be something you do for an hour or two and you don’t have to feel like you need to spend all day there since you can go back any time. The Ikea is right next to the mall as well, so if you like. Swedish Meatballs and cryptic assembly instructions for affordable furniture that utilize allen wrenches – you’ll be in heaven!

New Hope does NOT have it’s own school district, all schools in New Hope are part of the Robbinsdale Schools aka ISD 281. It’s a pretty big district with 10 k-5 elementary schools, 2 middle and 2 high schools. I always recommend that you do your research and see if the school district that your home is in is one that you will be happy with. You can check out Niche.com or GreatSchools, but another option is to actually VISIT the schools and talk to the administration and see things for yourself.

Speaking of brain food… New Hope residents have convenient use of 3 branches of the Hennepin County Library system. They can easily access Brookdale Library in Brooklyn Center, Golden Valley’s adorable little library, or the Rockford Library in Crystal.
One of my favorite topics when giving community profiles is the park systems. I just think green space improves the quality of life for everyone. New Hope agrees! They are a small city (only about 21,000 residents) but they have 18 city parks and several other venues offering all kinds of recreational activities including:

the new Hope aquatic center which is a community pool and water slide
2 off leash dog parksa 9 hole public golf course
disc golf course
ball fields
a skate park
tennis / pickleball courts
Community gyms with basketball courts that can be rented out for the day
and 3 outdoor skating rinks that are open in season.

sunflowers on rack with price tag near orange canopy tent — Photo by Daria Shevtsova on Pexels.com

The city hosts a Farmers Market on Saturdays from the middle of June through the middle of October at City Hall.

Lastly – Pets & fencing. Everyone’s favorite topics!

winking black and brown puppy — Photo by Dominika Roseclay on Pexels.com

New Hope allows for a LOT of pets – 3 dogs, 3 cats and 3 “other” household pets, as well as 3 “fowl”, This is not restricted to actual chickens – if you want ducks instead – go crazy!
All dogs, cats and ferrets need to be licensed and vaccinated for rabies.

Fencing – IS ALLOWED! 🙂

OK – that is ALL I HAVE on New Hope! It’s a lovely community that I feel lucky to have worked in lately. It offers a lot of great options to people that may be priced out of other areas of the city. It’s 100% worth considering if you’re wondering where to live in the twin cities metro.
If you like this kind of content – I have an entire playlist of neighborhoods/suburbs on my YouTube Channel that you can look at to see what feels right for you.

Thanks for stopping by!

Home Buying · home selling

March Real Estate Market Update

April 2, 2021April 2, 2021 MaryLeave a comment

My last post & video about this were pretty well received, so even though numbers aren’t flashy, I’m going to try to make this a monthly feature as we navigate through this crazy market. This post has some good little nuggets in it if you’re in certain segments of the market, so stick with me.

A bright spot for buyers?!!

Last time I posted about the market I gave an overview of “absorption rates”, this is going to be a recurring theme, so if you want to check that out you can find that post here: https://twin-cities-living.com/2021/02/26/i-had-other-plans-for-this-weeks-post/

There is an obvious lag in the data because we need to look after homes close and that shows up in the MLS, but I do get some data relatively quickly thanks to Minnesota Transaction Coordinators, a company that helps many of us with processing our transactions.

Let’s start there with their analysis of terms that they see in contracts.

Inspections

In the past couple of months we’ve seen quite a few buyers deciding to waive the inspection in order to release one more contingency ahead of everyone else. By “a lot” I mean 38% of buyers were waiving inspection in the first 2.5 weeks of the month, but when they looked at the first through the 26th the rate went to 31%. That means that enough people have STOPPED waiving them to lower this percentage by 7%. Buyers are insisting on protecting themselves and sellers are acquiescing to that.

Offer acceptance rates

Even better, offer acceptance has gone from 31% for the month last week, to 39% for the month over all as of the 26th. YAY!!!! Sellers are accepting offers! I represent a lot of buyers and it has just been TOUGH. So this is great news.

Homes listed on the open market vs witheld

In an office as large as mine, we often hold listings off market and only market to agents within the office. This shrinks the pool of who looks at the house which is desirable for a lot of reasons – from Covid, to privacy, to simply wanting to not have to deal with the preparation and hassle of selling on the open market. Sellers can name their terms and if another agent has a buyer that can meet those, there is a happy meeting of the minds without all of the associated prep work, exposure, etc and everyone feels satisfied. The number of sales that they have worked on in this status is down to 5.6%. This is good because more homes are hitting the market than have been.

Percentage of list price received

Current purchase price to list price ratio is “down to” 104% from 105% last week. It has been hovering between 103% and 105% in the past couple of months. It’s good to have that number in mind, even though it’s not a fixed price, it’s an idea of what you should think about when offering on a property that has a lot of interest. Price is not the entirety of a an offer, there are a lot of other terms that need to be in line as well, but this is good info for this metric.

Seller paid closing costs

26% of deals include some seller paid closing costs. I have to assume in this market that the offer price was increased to account for these, but I like that we are seeing it because it means sellers are accepting these terms.

Forms of financing

76% of loans are conventional (you do NOT need 20% down for a conventional loan! These are viewed as more favorable and if you can get a conventional loan it’s one more check mark on the list of terms).

FHA loans represent 10% of the offers, CASH 10%, and VA & USDA loans are at 4%.

Traditionally, inventory really increases around this time of year (inventory = homes being listed and available for sale). We currently have less than HALF of the listings we had 6 months ago.

Good news for downtown condo buyers!

Downtown condos are in a balanced market right now! If you are looking for a condo in the central city including neighborhoods like Loring Park, Downtown, University, Dinkytown, Elliot Park etc… now is the time. We believe that this is caused by the pandemic and people wanting to live in less dense housing + fewer people needing to be downtown for work, but don’t expect it to last with the speedy rollout of vaccine and life returning to somewhat new normal.

Days on Market are up to 41 (only from 38), but these are the kinds of indicators that let buyers know that they will not likely have to pay more than list, that sellers will be willing to negotiate because they know you can find another condo to buy and someone will play ball with you.

So that is what is happening! Sellers are still mostly in control of things, but if you’re a downtown condo buyer you’re in the sweet spot!

Let me know if you have questions.

Uncategorized

Waconia

August 22, 2020 MaryLeave a comment

I don’t know why I’m consistently surprised every time I profile a community, but I seriously underestimated Waconia. I think in this case I may have had a bit of urban arrogance… 😉

Waconia is a small community – only about 11,000 people – and it is 30 minutes directly west of Minneapolis. It’s kind of on the edge of Twin Cities development and there are still farms and fields on the way there and more so as you head west. I did not expect it to be able to offer all that it does!

Waconia has a charming downtown area that is still alive and kicking – businesses were busy when I drove through there on a Wednesday morning. I didn’t notice any vacant store fronts- something that breaks my heart when I drive through small towns. The downtown sits just off Lake Waconia and has the classic central square with the gazebo and a playground.

I’m always interested in parks, schools, libraries, and what things the city offers it’s residents – Waconia scores well on all of these things, plus a lot more.

The location on the lake is a huge plus – Lake Waconia Regional Park has a beach, geocacheing, sled hills, cross country ski and snow shoe rentals for winter fun on the trails. Waconia is a small community but it has has 3 community parks and 18 smaller neighborhood parks.

For such a small town, I was surprised at the amenities offered by the city – Safari Island (the name confuses me a bit, why SAFARI in Minnesota?), has an indoor aquatic center, fitness center, running track, basketball courts, and a kids play area. Hockey & ice arenas are a big deal here, and Waconia is keeping up with the Jones’. You won’t be deprived of your ice time here – and if the prices listed on their site are accurate, it’s super affordable.

Waconia has 3 wineries, a distillery, and a brewery that hosts food trucks or allows you to order or bring in your own food. If alcohol isn’t entertaining enough for you check out Carlson’s Lovable Llamas. Don’t say that there isn’t variety!

There is a wide variety of housing in Waconia – townhomes, and twinhomes, older single family homes near the center of town – either historic, character type homes or more mid century as you move outward a bit. On the outer edges of town are newer subdivisions with large modern homes on smaller lots. The least expensive home for sale in Waconia today was a 3 bed, 2 bath 2015 townhouse listed at $280K, and the most expensive single family home is a brand new lake adjacent build listed at $1.345M, but the median SF home price in Waconia is $340K, so higher than the twin cities median of $290K, but I would say lower than other western suburbs.

Niche.com gives Waconia schools an A rating, so if you have kids, there is lots to do between the parks, lakes and llamas, and they will likely make it out of school with some knowledge stowed between their ears.

mschumann@kw.com

612-234-5703

Uncategorized

Wildflower neighborhood ~ Eagan

August 15, 2020 MaryLeave a comment

I have previously expressed my lack of enthusiasm for cookie cutter neighborhoods. This one isn’t QUITE as unique as Cobblestone Lake (see my last post), but it definitely has it’s charms.

It’s a small neighborhood right near the most beautiful park in this part of the metro area – Lebanon Hills. I feel like I sing the praises of Lebanon Hills every other video / post at this point – but it’s a really nice park! I like parks, sue me.

The homes are all a similar style – 3 or 4 level splits, but the neighborhood is established enough to have mature trees, and people have lived in the homes long enough to have made changes to them.

I also didn’t think I loved split level homes, but it turns out I love THESE split level homes! I’ve been in two of them recently with clients, and both had the same kind of cozy feel – not necessarily SMALL, but because of the nature of the 4 level split it has a smaller footprint and goes up one level, and down TWO levels. They seem to go on and on. I’m one of the rare breed (or silent majority?) that likes a home with WALLS. I’m not opposed to a certain level of openness, and I think high ceilings add a lot (these have them!), but when you have more than one person living in a house, it’s nice to have a separate space that isn’t a bedroom that you can go to and still be OF the house but not necessarily right in the mix. If you’re living in MN, you will also appreciate that they all seemed to have fireplaces for winter coziness and beautiful back yard landscaping – either a deck or a patio – to enjoy the summer and fall.

The neighborhood has a really interesting layout – every street is a cul-de-sac! Until I had a kid I didn’t realize exactly how much I would like a cul-de-sac. The only traffic on any one of the short streets has a purpose for being there, there aren’t ANY cars using the neighborhood as a shortcut and there is only one way in or out, and that way has a bike/walking trail running right down the middle of it.

One of the homes we looked at backed up to the shopping area on this map – at first it was a little startling and we thought possibly not a great idea, but who hasn’t been one ingredient short when making dinner? it was quiet, and the walking/bike path continues from the entrance to the neighborhood on Lexington Pointe Parkway straight back to the shopping area. If you feel like heading over to the Eagan Arms Public House or Theresa’s Mexican restaurant – easy peasy!

If you have kiddos, they can take that same path over to Northview Elementary or Dakota Hills Middle School. Both have “A” grades on Niche.com.

Last but not least – it was apparent that this neighborhood had an active HOA. While it didn’t seem to revolve around ridiculous rules about the color of your curtains, the fees paid in went to maintaining the beauty of the neighborhood – either the abundant gardens lining the entry to the neighborhood, or the neighborhood mailboxes.

The three times I was in the neighborhood I saw people out walking and enjoying time with their neighbors. It just felt like a really welcoming little community.

Right now, single family homes in Eagan have a median home price of $341,000. They spend very little time on the market and they get at least 100% of their asking price.

Have a question about a particular suburb or neighborhood? Let me know!

mschumann@kw.com

612-234-5703

Home Buying

Buying a home – online!

May 17, 2020May 18, 2020 MaryLeave a comment

Dr. appointments are held via telemedicine & Zoom calls. My cousin just ordered a CAR online and had it delivered to her house. You may now be buying your groceries online for delivery or curbside pick-up. We also buy just about everything from Amazon, pajamas for my kid, water filters for my fridge, I’ve even ordered a new antennae for my old VW Beetle from Amazon! We read a lot in our family and the libraries are mostly closed with some drive up options, but now we do kindle and download (I know that’s old hat, but it’s a new way for us).

Would you ever consider buying a home online?

This topic likely could have been one of the first that I put on my blog, but sometimes you do something so much that you forget that it’s unusual! Covid is bringing a lot of attention to it right now – a friend sent me a copy of this article in the Wall Street Journal about the fact that buying without seeing a home in person has gone from 3.5% of agents saying that they have done a contract this way to a whopping 31% in April of this year! All I could do was nod my way through it.

Buyers do this when they are in the military, moving from overseas, or simply relocating from another state. Obviously at any point a visit is welcome, but if it’s not possible then there are ways to make it work.

I know people start shopping for homes that way – they like to visit the big online portals for listings so that they can see what homes are for sale, see pictures, get information on taxes and prices etc.

I have a good understanding of the difficulty of relocation because of my personal history of moving from state to state for fun or job relocation and also knowing how hard that was without being able to piece together what life looked like – most especially when I moved to Minneapolis from Chicago, which had much higher stakes for us, we had a kid changing schools, no family here, homes to sell and buy…

I started my YouTube channel and have focused a lot on showcasing neighborhoods and homes of every price and type, as well as trying to show a bit about what life is like here in Minnesota.

I thought I would help people like me.

And I *AM*!!

I regularly get calls or emails from people that are moving to Minneapolis for work, school, medical care or just because they want to, and they are coming from every part of the United States and across the world. They may be thinking of renting at first or may also be ready to buy a home here.

So, how do you buy a home from a long way away? Well, it’s definitely not the same as when you’re here in person, and the most important thing is to find an agent that you can trust. Agents always act as your partner in the purchase of a home, but when you are buying from a distance this is far more important. Your agent will be able to give you the information that you need before making a decision. This can be data on sales, rising and taxes, information about what schools are there, to just being able to provide you with video and commentary on what is in the area.

A very important aspect is that you are very open and clear with your agent as to what you prefer and what things are important to you in a home. I’ve had clients that were very specific about wanting 2 acres of property in the south suburbs, to those that prefer a high rise in the heart of downtown and everything in between. For out of town clients I preview all homes for them and take a video tour. In some cases, I’ll look at anything available in their price range that meets their criteria – listings sometimes aren’t enough to decide. More than once I have bought a home that I didn’t even think I wanted to see based on the photos. If nothing else, this gives a very clear picture of the competition and a better idea of what to offer once you’ve narrowed down your choices.

You’ll still need to do all the basic things like get pre-approved for a mortgage (easily accomplished ONLINE!) so you know how much you can afford to buy. But after your preferences and budget are clear I generally try to do the following:

Set up a search on the MLS for you. People generally seem to love Zillow, but I believe that is probably because it’s what is available and people are used to it. It is also notoriously inaccurate. The best thing to do is to have an agent set up a search that meets YOUR criteria. This can be very specific – certain streets, specific layouts (ranch, 2 story, town house…), school districts. This is tailored specifically to YOU.
When you have an idea about neighborhood, I will film a neighborhood tour – this gives you a good sense of what the neighborhood looks like, what the streets look like, what businesses are there, is it very residential or mixed with industrial? Do you want to be able to walk or bike ride? What about public transportation and schools? Any funky smells? I can show these to you and you’ll have a private link on YouTube to look from afar.
When you find the neighborhood that you like and narrow down the homes, we can take this a step further. Agents always present their listings to the best advantage in pictures, but does this always match reality? No. So again – a video tour of the home, inside and out so that ALL aspects of the home and its situation are available for your evaluation – closets, basements, the street, the back yard. This can be on a video link or through Facetime so you can be “present” on the tour.
If the home is acceptable and you decide to move forward video can continue to do its job. The inspector may take video or your agent can attend in your place and video the inspection. This is helpful because you can pause at any time and rewatch as you like – it gives you some time to process what you’re seeing and hearing in the video. Sometimes inspections can feel overwhelming if it’s a first time buyer, but this actually gives you a way to slow it down.
We already do so much of our business on line – we sign contracts and loan docs, transfer money, search for homes, communicate often and easily via text or msg, this is just the last piece. You can likely close remotely assuming that signatures are notarized or witnessed, and you’ll be able to get keys either sent to you or held for pick up when you’re ready.

It’s always best if you can see the home yourself. Then you KNOW. But if you can’t, that doesn’t have to stop you from getting a home for yourself.

You just need to find an agent that is used to working remotely and is willing to put in the time to show you what you need to know to feel comfortable with your decision. I personally find this to be a really satisfying client to serve – it gives me a new perspective on my city and I get to welcome new residents to a place I love.

Are you in this situation? I’d love to help you out. Contact me or leave a comment with questions!

mschumann@kw.com

612-234-5703

Home equity

Steps to building equity in your home…

April 20, 2020April 20, 2020 MaryLeave a comment

What is equity?

Equity is your ownership stake in the house. If your home is worth $300,000 and it’s paid off, you have have 100% equity in the home or equity of $300,000. Most people do NOT have 100% equity in their home, they may have put a 20% (or if it’s an FHA loan 3.5%) down payment and then owe the balance (80% or 96.5%). But that isn’t the end of the story. Beyond whatever your original down payment is, you can build “equity” in a home by doing what you can to improve the value of the home as well.

Most homes will increase in value over time and that means that beyond paying down principal, equity will increase as the home’s value increases because the value increase is YOURS and nothing to do with any debt to a mortgage company.

To use a very simplistic example: If a home’s value increases at 3% per year and the home was valued at $100,000 when it was purchased, the following year it would be valued at $103,000. You owe less on your loan because you’ve been paying down the principal AND if you were to sell your home would it likely get $3k more than it would the year before, and that money is yours.

Here are some ways to increase the equity in your home:

Pay more than you need to on your mortgage.

This is a great option if you don’t have debts that carry a higher interest rate than your mortgage (pay off the highest interest rate debt first), if your home appreciates faster than your 401K or if you aren’t tight on money month to month.

Talk to your lender to make sure that extra payments will go specifically toward principal and then consider either adding additional money to your payment or trying to make at least one extra payment per year.

Here is an example of interest savings and reduction in the life of the loan by making an extra payment, or simply paying a little more each month from Bankrate.com

Here’s an example of how prepaying saves money and time: Kaylyn takes out a $120,000 mortgage at a 4.5 percent interest rate. The monthly mortgage principal and interest total $608.02. Here’s what happens when Kaylyn makes extra mortgage payments:

PAYMENT METHOD	PAY OFF LOAN IN …	TOTAL INTEREST	TOTAL INTEREST SAVED
Minimum every month	30 years	$98,888	$0
13 payments a year*	25 years, 9 months	$82,870	$16,018
$100 extra every month	22 years, 6 months	$70,944	$27,944
$50 extra every month	25 years, 8 months	$82,452	$16,436
$25 extra every month	27 years, 8 months	$89,864	$9,024
*Extra $608.02 payment

https://www.bankrate.com/mortgage/prepaying-your-mortgage/

Refinance to a shorter term loan.

People often only think in terms of a 30 year loan on a home, but you can finance a home for 15 years at a lower interest rate and pay off your home in half the time. Even better, those aren’t your only 2 choices – you can ask for any term that you like and that will make the rates work for you. Not every lender will have that flexibility, but the ones I work with have been offering off term loans as well.

One thing to consider with this option is that you will have a higher payment that you are obligated to make. You’ll be committed. In the first scenario that I mentioned where you pay a little more every month it’s voluntary and you can set it up to do so automatically so you don’t have to make that decision every month, but you can also stop it if your financial situation changes.

Renovate the interior.

Simple things like fresh paint and new light fixtures can go a long way to improving the value of your home and your equity in it. You don’t have to make it look like an HGTV star lives there – simply having relatively modern fixtures and a home that looks clean and well cared for goes a long way.

If you do choose to do a more extensive update, kitchens and baths are where you’ll see the biggest return. This assumes that you choose a style that is not super trendy or likely to appeal to only a small subset of buyers. Keep things relatively classic and as high quality as you can afford.

Add curb appeal.

Many buyers make their decisions within seconds of seeing a house. You may not be a gardener, but taking care of the exterior of the home goes a long way. No chipped or faded paint. Flowers in pots or well maintained beds. Make your entryway look inviting by having a fresh paint job on the door & quality fixtures. Keep trees and bushes pruned back away from the house and the lawn well cared for and not overgrown. It’s weird that free or inexpensive things like trimming trees and planting flowers can have an impact, but value is also about perception. Square footage is one thing, but condition is another.

Any deferred maintenance on the exterior makes alarm bells ring loudly to buyers and appraisers.

Why does equity even matter?

Well, it doesn’t, unless it does to you. One reason it could matter is if you’ve purchased a home with less than 20% down and want to get out from under PMI. If you are able to increase the value of your home over time or with improvements, you can have the property reappraised and potentially get rid of PMI. If you had an FHA loan you would be required to refinance, but the same theory applies. And, hey! If you had an easy time making your mortgage while paying PMI, pretend you still have it and throw that $100/month at your mortgage principal instead.

Some people want to be debt free, and home mortgages are typically the largest debts we carry. Ridding yourself of a house payment as soon as possible as well as reducing interest payments is a good thing if this is your goal.

Or maybe you use your home as a form of savings account in addition to whatever else you’re doing and plan to sell it when you retire and use the proceeds to buy your beach bungalow or cabin. Or you have kids that will be going to college and you want to be able to use some of the equity in your home to pay for it.

Whatever your goals are, these are a few ways to help you get there.