Secrets of the City

Sam, you should post the link to your MLS listing!

I know someone who lives in what must be your building. Her place is awesome. I realize downtown condo buyers have a ton of options right now, but it’s hard to believe that you haven’t seen much interest.

Focus on the island aspect when marketing your property. Maybe hire one of those steel drum groups. And pass out coconut drinks.

Have you started dropping your price? Given the glut, and where we are on the downturn curve, buyers are now going to be looking, not for good deals, but for steals, and the steals are starting to appear.

Are you (painfully, but realistically) looking at a sale for less than you owe? Call your bank and see if they’ll take a “deed in lieu of foreclosure.” (You just sign a deed giving the bank the condo, and your mortgage debt is gone.) It’s cheaper for the bank than foreclosure, it usually won’t show up on your record as one, and, while you’ve lost what you’ve put into it, you’ve capped your loss and moved on.

But, consider that only if things are really bleak. If you can hold on for a bit, keep with the sale efforts.

I was actually going to link to the listing, Jason, but I wasn’t sure if that would cross the MNSpeak line into self-promotional territory. For what it’s worth, here’s the link.

I haven’t started dropping the price simply because price doesn’t seem to be the problem. According to my realtor, only two condos in my price range have sold since June 1 in the entire city of Minneapolis. There’s just not a lot of demand, and I’m not so desperate to sell that I can’t wait a while for a buyer. But I love the coconut drinks idea. Might just bust that out for this weekend’s open house…

Almost forgot: a friend sells condos and apartments in another (much bigger) city. She’s had great luck with some places that had great views, by placing a large-as-possible, readable-from-afar sign in the windows basically saying “want this view? $X00,000. 212-xxx-xxxx”

She gets sales right before the association lawyers find her.

Have you tried hiking your price? Maybe it’s priced too low.

Wait, there are condos on the island itself?

Also, howdy neighbour!

Finally, the thing that actually makes me kind of sad about the condo glut is that it means the East Bank Mills project will probably take forever to be fleshed out and built (if it’s not abandoned halfway through).

Oh wait, is it in those little rowhouses behind DLS? That’s the only non-house residential structure on the island that I know of.

Oh I totally called that.

Rent it out. My cousin did that with her condo in Maple Grove when she moved in with her fiance, and she’s planning on selling it when things start looking up again. She worked with some realtor’s association (the name of which escapes me) that finds rental homes for people relocating to the area; they found the people, did the credit checks, everything, and all she does is deposit the check every month that pays the mortgage.

Taxes of $3400? Is that the homestead amount? Damn, you guys in Mpls get soaked. In EP/Mtka, a $300k house would pay about $2300.

Good idea, Josie, except that our association doesn’t allow renters. We don’t allow “For Sale” signs either, which isn’t helping, but I’m hoping to get that rule waived soon…

Not a real estate expert by any means, but asking $300 large for a 1bd/1br condo isn’t the problem? Frankly, the view in those pictures doesn’t seem that tremendous. Just speculating here, if someone had $300 large to spend on a condo and view mattered, they could probably get something much better in downtown itself, and even have a bedroom to store guests in maybe.

Buying that condo in that location would be akin to turning down a round of golf at Hazeltine to play the Chaska Par 30, at least to this lay person.

Stop showering, and hang around in the lobby. They’ll waive that “no signs” rule fast.

Yup. Homesteaded. And you can thank Governor No-New-Taxes for that $3400. My property taxes have jumped more than 35% since he took office and started slashing away at Local Government Aid.

bobby, I could move to Mississippi if I wanted an even better deal, the trouble is that you’d have to move to these places to get them — and $300k doesn’t buy anything in EP/Mtka.

Oooh, it’s cute! If I had the scratch, I’d buy it…

That was my only good idea. Good luck!

one bedroom for $300k? wow.

Did it ever occur to your realtor that the fact that only two condos in that price range have sold indicates that only two condos were appropriately priced for the current market?

could you partition the one big bedroom into two small 10′ x 14′ bedrooms? I have to imagine the market for 2 bedrooms is larger and more lucrative.

Kevster … Location Location Location!

Actually I’ve been looking for a condo in that price range and in that area. For some reason, it hasn’t shown up in my edina realty mls searches. I’m going to check it out.

Price seems about market rate, if not a tad high considering its a one bedroom, but certainly looks to be a fair price (contrary to previous posts)

and $300k doesn’t buy anything in EP/Mtka.

not true. you can get a great 2 bedroom rambler in either for less than 300K. Here’s 2,500 sf 4 bed 2.5 bath home on 1/2 acre @ HWY 7 & 101 in need of only minor updates. As a matter of fact, I think I’m going to check it out this weekend.

I think the question of price appropriate to the market sort of goes out the window in a glut situation. I’m no expert either, but judging from how things are going around the city, there’d be no way a price drop would change anything unless it was so significant that I’d be bankrupt on the other end of the transaction. Besides, a 2BR unit in my building sold last year for $350K, so I don’t think the price is out of line. I’m willing to negotiate, obviously, but looking at what else is available at that price, my place stacks up nicely.

Try a really good realtor. Mine was Bruce Erickson at CBBurnet. He can sell sand in the desert.

White tile counters? 80’s Track lighting? Aging white appliances? 300K?

Clutter up the ass. No wonder it hasn’t seen much interest.

Maybe a call to Sell this House is in order.

“And you can thank Governor No-New-Taxes for that $3400.“

Shorthand for “bobby, that damn governor refused to make you pay more for my services!”?

Not to be negative on this, but perhaps you can get your condo association to paint the building some other color than 1975 Olive Green.

It looks like a nice place with nice views. However, when you show the exterior of the building, it is like a slap in the face.

I don’t know why some broker sites limit the size of their property photos.

If you’d like to see bigger photos of the property, check out the listing on MinnesotaHomes.com. FWIW, I work for the company that built the RE/MAX Results site.

That building looks nicer than the pictures make it look. The Island must be a really cool place to live. Your association fee is pretty reasonable, compared to some of the buildings across the river, which is also a good selling point.

Does your realtor specialize in condos/urban high-end stuff? Maybe you need someone who works specifically with these kinds of properties, since it’s kind of a niche market. If you know anyone who teaches in one of the fancier departments at the U, you might have them put a flyer up.

But I dunno, man. My friend is a realtor specializing in condos, and sales are just off. Way off. It just might take a while.

Shorthand for “bobby, that damn governor refused to make you pay more for my services!”?

No, more like shorthand for “bobby, that damn governor refused to spend any of that big chunk of money I pay in on my services.”

Don’t forget the urban areas almost always pay more in taxes than they get back in services. the LGA was a nice attempt at setting that a little bit right until TPaw got his hands on it for budget-cutting.

“Don’t forget the urban areas almost always pay more in taxes than they get back in services.“

Is there a good source of stats on this issue? I’d be curious to know where the various spots that come into these discussions lie on that particular continuum.

Bobby, I’ve seen those numbers before, and now can’t for the life of me find them anywhere.

They’re not terribly surprising, I don’t think. As I recollect, Minneapolis pays in slightly more than it gets back out, St. Paul takes in a fair amount more than it pays out. The suburbs are a mixed bag; wealthy, established suburbs pay in significantly more than they get back, while poor struggling suburbs take in more. Outstate is almost universally suckling at the teat of the metro area.

Trying to tie this in to our conversation yesterday, I’d argue the difference between a Minnetonka and a Minneapolis is that the city of Minneapolis is broadly providing services for the entire metro area; Minnetonka, not so much.

When a visitor from the suburbs (or outstate MN) comes into downtown Minneapolis, they use our roads, they rely on our police service, they take advantage of our support for the arts, etc. In turn, their presence likely increases property values, which in turn should lead to increased property taxes, and they probably pay some sales tax. The state takes a good portion of the property tax, and almost all of the sales tax.

In my mind, that’s a pretty strong argument for stable and significant LGA funding.

I’m guessing that those interior pics don’t do your unit justice, Sam. They’re awefully dark. Did you or your realtor take them? You might ask for a professional photographer (with lighting) and an online photo tour. Lots of agents will provide that, even though they don’t typically offer it up right away since it comes out of their own pocket.

Also, look at some staging books and videos. (There are several clips on youtube.) Your stuff is nice but there’s a bit too much of it in the photos, particularly that one wall with several hangings.

Hope that helps, and good luck to you.

Agreed, definitely retake the photos with less clutter. I helped my sister sell her house and we cleared 30-40% of the furniture and what-not from each room before photographing them.

I really like the “want this view?” sign idea, too.

Good suggestion about the photos – I’ll definitely take some new ones. (The first time around, we made the mistake of taking them when there was the most natural light in the condo, but because of all the windows, it made the room look dark and the windows blinding.) It’s actually a very attractive building, inside and out, and the exterior paint job is only a couple of years old. I can’t do much about the tile counters (which I actually love, but I know some disagree,) but the appliances are almost all new in the last five years. I know stainless steel is the fad right now, but honestly, it would’ve looked ridiculous in this unit.

Anyway, thanks for all the suggestions, and Tuck, by all means, come by for the open house this Sunday, 1-3pm.

You can always pretty them up a bit in Photoshop. I don’t mind doing some for ya. Higher resolution is better.

“Good suggestion about the photos – I’ll definitely take some new ones.“

As the main point of info to possible buyers when pressure-marketing a $300,000 asset?

No. Pay a professional to do the pics. You’ll probably pay an agent thousands, and good pics do as much, if not more, than an agent.

“You can always pretty them up a bit in Photoshop.“

If you can shop that pic of Mandy Moore into the bedroom views, I’m thinking maybe $350,000.

I drove by that building as recently as 3 weeks ago, and let me tell you, living on the island would kick ass! It’s friggin’ gorgeous, so close to the Falls you can spit on the new NE Lunds & Nye’s, and it’s amazingly tranquil.

I agree that 2 bedrooms fro 300K would be more palatable.

I also agree that people are waiting for a screaming deal. There is such a herd mentality in residential real estate, and right now the herd is shy.

Personally, I’ve watched a house in my neighborhood drop from 210 to 170 over the past 4 months, and I’m looking at it Friday. Nothing that size has sold around me for 170 in the last 4 years.

Well, it has been seven months now and the condo has still not sold. I think it is overpriced, and the original owner paid too much for the unit in 2002. He paid 265k in 2002 and is listed for 279k, in terms of square foot, it comes out to be $273/sq foot. Why would anyone buy an older condo, when units in Bridgewater and other places are going for 220 to 230/square foot. And if you look at some of the foreclosures, they are going for $170/sq foot. I think unless you cut the price by a steep amount, no one will bite.

My best guess for the value of the condo is $175k. It is based on the fact that real estate in Minneapolis has appreciated at a 4 percent rate from 1989 to 2000, based on Case Shiller Index. We will revert to that long term mean, and w need a 15% decline in house prices to get to that average. If you look at 45 Island Avenue, that sold for 68k in 1985 and apply a 4% appreciation, we end up with 172k. I am sure the original poster would be upside down, but this is the harsh reality of the real estate bubble that took things out of whack.