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Old 04-28-2015, 09:52 AM
 
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We may be moving to the area from Houston and the housing prices are so high in Fargo/Moorhead! In Houston we have a very nice 4 bedroom, 2.5 bath, large kitchen, formal dining room, great room and a study and paid a little over 200k for it. A comparable home in Fargo/Moorhead is looking to be around $350k! Can anyone tell me why the housing market is so high? When I look at the price histories these homes for sale were like 100k less a couple years ago. Thanks!
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Old 04-28-2015, 04:33 PM
 
Location: Fargo, ND
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Fargo-Moorhead never really had to deal with the housing crash of 2008-2010, so the market here was never depressed with a large number of foreclosures on the market. Also, construction labor here costs more--the oil boom has pulled away huge numbers of employees in the skilled trades, so wages have to be at a premium in those trades to keep guys here. The third factor that always applies when comparing housing costs in ND to the South is that with the frost line going four feet down, all houses need to have a foundation at least that deep. That much concrete costs.
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Old 04-28-2015, 04:44 PM
 
Location: E ND & NW MN
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I moved to the Grand Forks area in 1998 and lived in there area since. Fargo has always had the cheapest homes and rental prices of any of the major North Dakota cities. For what a home can be buillt in Grand Forks had about 50K to what it costs in Grand Forks and Bismarck/Minot.

But I never recall any newer homes for around 100k, unless you look at maybe before 2000. I moved in 1998 to Grand Forks and a 1978 split with 1900 sq ft was 126k....nothing special. Fargo this would have been closer to 100-100k. Since them home prices have climbed steadily....not hugely....but slow and steady. And as dutchinnd said there was never any real estate bubble/crash here in the 08-09 period. We are an island. In many cases demand for 200k and under homes has always outstripped supply.

Now in Grand Forks case in terms of the housing market which I am more familiar with. New homes are being built on what was valuable ag land. So developers had to pay a pretty penny for the land to start with. Due to our cold winters, there are much more enhanced building codes that must be met in terms of foundation and insulation than in the south.

The house our family has now we had built in 2003 and from that I recall that water pipes and other piping must be a certain feet below the ground due to frost...and sump pumps were mandatory as well in most. Basements or have a level at least partially below the ground is very common. Extremely uncommon to see any house built with just a crawl space underneath it.

In the Grand Forks market...prices have gotten pretty high and new homes....typically split level with 2200-2600 sq finished finished (4 BR/2BA) and ranches with lower level partiall unfinished will run at a minimum of 260k. Most new homes start in the 320-370k range. There is a very serious lack of homes below 200k unless it is a townhome, but even those are usually 200-250k. Fargo does have more competition and thus have always had cheaper prices in everything....food, gas, housing. Once you hit Fargo prices only go up as you head north and west.
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Old 04-28-2015, 04:49 PM
 
Location: E ND & NW MN
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I also want to add..... I moved up here from Springfield Missouri and had a new home there. a typical ranch with a crawl space built in 1997 for 105k mostly brick. No specials. Up here specials for new roads, lights, sewer, etc are expected. So if looking at new homes, expect specials to be extra and usually set up on a 15 or 20 yr loan basis. Thus with real estate taxes...you have property tax and then your annual specials that are due for the total property tax bill that you pay. You can pay off the specials at any time and the do vary greatly from area to area. Older homes (say 20+ yr old homes) would typically have way less specials or none at all.

For some of the newer Grand Forks homes near the new elementary school specials run nearly 40k this is paid on top of any property tax which runs around 1.7 to 1.8 percent of assessed value. This is Grand Forks I realize....but I was not aware of the specials that are common up here with home building. So keep that in mind, in case you dont have that situation in Houston. Springfield MO didnt have any.
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Old 04-28-2015, 05:02 PM
 
Location: E ND & NW MN
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We built on the Minnesota side of the Red River... and lot prices and thus housing prices were a bit less. Lower property taxes but of course higher income taxes and much higher vehicle registration fees. I say this as I saw you were interested in moving to Moorhead. MN does have overall a bit better statewide school network for dealing with any special needs kids and anyone requiring a 504 plan. There is tax reciprocity between MN and ND.... you are taxed on where you live not what state where your job is at. You do have to submit a quick form each February so that ND state taxes are not taken out of your paycheck if you live in MN and work in ND as I do.
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Old 04-30-2015, 12:04 PM
 
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Houston has specials too. They are called MUD taxes. And the tax rate is about 3.8%. It super high. We pay about 10000 a year on MUD, Taxes and property insurance on our home. what would one expect to pay for those items in Fargo or Moorhead on a $250000 home?
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Old 04-30-2015, 03:33 PM
 
Location: E ND & NW MN
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Quote:
Originally Posted by loflem View Post
Houston has specials too. They are called MUD taxes. And the tax rate is about 3.8%. It super high. We pay about 10000 a year on MUD, Taxes and property insurance on our home. what would one expect to pay for those items in Fargo or Moorhead on a $250000 home?
I went through the MLS for homes listed around 250K and saw what was listed....

For homes listed at around 260k -- Of course that doesnt mean it was appraised by the county as that high -- often they are not for tax purposes.

But to give you an idea.... for one home in a new area of south Fargo list price was 269k it said general taxes 3,800 and yearly specials 1904.... with 18,241 specials unpaid.

so your yearly tax bill would be near 6000k



Now for our house in East Grand Forks Minnesota.... it was built in 2003 and we had some specials for the roads and street lights. Latest statement for 2015 taxes was appraised at 273k -- general tax around 2400 specials 2000 for a total tax bill of 4400 for the year.

I looked at Moorhead....and saw a listing for a 2007 home priced at around 264k and it is listed as taxes in 2014 as roughly 2850... its unpaid specials were very low.

Taking out the equation of specials....which will vary greatly....high if you move into a new neighborhood ... vs say a 10 yr old home in a newly but more established neighborhood..... for the same price roughly around 265k a Fargo home would be near 3800 property tax and Moorhead roughly 2850. These were just looking off MLS only so very rough estimates of comparison as unkown appraisal prices.

Overall you would likely pay more than the 1000 you save in Moorhead by ND lower income tax and lower vehicle license tax. But there are of course other variables too....such as prices for a compariable size home in Moorhead is a bit less (more bang for your buck in MHD) and a bit smaller school district.

http://distil.flexmls.com/cgi-bin/ma...=lznuix0u8s7,4


There is definitely more variety of homes (as you would expect in F-M area) vs my area (GF-EGF) and home prices are indeed a good deal cheaper of comparable homes from what is in my area too. about 50k less.


Good luck with whatever decision you make in terms of moving.


Dan


So your
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Old 04-30-2015, 03:35 PM
 
Location: E ND & NW MN
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I had bought a new home in Springfield Missouri in 1997 it was a ranch with no basement -- but a crawl space.... its taxes on a assessed 100k home was only around 900.00 and no specials even though a completely new subdivision. So was in for quite a surprise once I found out about specials. I hadnt owned a home any other place besides Springfield MO before here.
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Old 04-30-2015, 03:42 PM
 
Location: E ND & NW MN
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I forgot to add homeowners insurance.... ours is through state farm and based on a 275k house is around 1350/yr.
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Old 05-04-2015, 09:43 PM
 
Location: Fargo, ND
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Sometimes the prices are lower in the surrounding towns such as Mapleton or Casselton. Maybe finding a realtor who works in these towns can help. Also, when you find something that you like. Make a lower offer. Sometimes this works, sometimes you lose the property...
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