Can't buy a SFH in Twin Cities for 200K? (Minneapolis: foreclosures, to rent)

[Navelinski]

There are many single family homes in the north metro which have been COMPLETELY REDONE for under $250K. And with all of the new construction in Big Lake, Monticello, and Ostego - those areas are not as affordable as they once were. Taxes outside the metro are going up as well; a friend of mine in Monticello was just complaining to me about how much her taxes were going up.

The Northstar Commuter Rail will also go through Coon Rapids which was determined to be have MOST affordable housing in the Twin Cities Metro Area.

You can't tell much from the listings you see on the internet or from sites like Zillow when it comes to home pricing. You really should find a LOCAL realtor if you are thinking of moving.

There can be a big difference between the average price, median price, sale price, asking price, and taxable market price. Median price takes into consideration that there will be some uncharacteristic homes at the high and low ends of the spectrum. The effects of these uncharacteristic "outliers" in the data are mitigated by using the median.

As for losing the value of your home - think about it - you haven't actually lost anything until you sell. Prices will rebound and you will eventually get that 10% back if you stay in your home for a few more years. And while I believe we have seen the "worst of it" as you put it - we may never get back to the double-digit percentage increases we had a few years ago. That was an anomaly which is unlikely to be repeated.

Originally Posted by yellowsnow

Any SFR you find for less than 250K is going to be a fixer. That's not necessarily a bad thing. If you can find a fixer in a really good area, it can help you build equity.

Who knows what the market is going to do. I've already lost more than 10% of my homes value. I am hoping we have seen the worst of it. The last Fortune report I saw said the midwest was going to be a stable market in 2007. I can tell you for sure, you will get a lot more for your money now than you would have a couple years ago. You can get even more for your money by going further north and having a longer commute. Check out Monticello, Big Lake, Otsego, and Becker. These towns may be a better deal because the North Star(commuter rail) will be serving these towns in the near future.

I don't understand those median home value things but if I could find a median home for 125K, I would buy it! Maybe they are talking about tax values? Not resale values? I haven't seen prices that low since about 1995.

And BTW.......taxes are a lot lower outside the metro area!!!!!

[Navelinski]

Originally Posted by Slig

I have been actively looking for a house in Minneapolis for under 200k for the last few months. All the houses I've found are either fixer uppers, in a bad neighborhood, or very small. Also, about 95% of the houses were built before 1930. I've looked at condos too and really the only thing you can get for under 200k are 1 BR 1 BA's, maybe a den if you're lucky.

Slig - while that may be the case in Minneapolis proper, there are good alternatives in the near by suburbs like Coon Rapids and Blaine for under $200K.

[Navelinski]

Originally Posted by midwest456

Thanks. Would outlying towns like Monticello or Big Lake have access to broadband internet via cable, though? Also, what are those towns like culturally? Is it like Coon Rapids area? Another area I was wondering about was the less urban northwest corner of Hennepin County (Corcoran etc.) Worth looking at?

Corcoran is a bit out of the way culturally and is not very diverse. That northwestern part of Hennepin County has many lakes, rivers, and large parks which make them more attractive to the higher-end homebuyers and developers. Also, many of the homes are newer and they tend to be more expensive. In you price range, you won't find as much in that area as you would in towns like Crystal, New Hope, Coon Rapids, Anoka, Blaine, Brooklyn Park or Osseo (just to name a few).

Good Luck House Hunting!

[Navelinski]

Originally Posted by yellowsnow

I believe the metro is composed of 7 counties. These are: Hennepin, Ramsey, Dakota, Scott, Anoka, Washington, and Rice. I think I got them right. These counties pay the highest taxes.

The difference is quite a bit of money. When you look at the MLS, check the county and the taxes paid by the current owner. Or for example, look up 300K existing homes in Hennepin and Sherburne counties.

The general public does not have access to the actual MLS itself. What laypeople have access to is a subset which is released for public use. Depending on the actual web site that is providing the information, there could be omissions in the technical data, it could be outdated, or they may not show tax assessments.

Its probably a better idea to find the address of a home you are curious about and check the public record information for the county. Hennepin, Anoka, and Ramsey (as well as others) have online access to public record tax info.

For example, to find tax info for homes in:

Hennepin County use this link
http://www2.co.hennepin.mn.us/pins/addrsrch.jsp (broken link)

Anoka county use this link
https://prtinfo.co.anoka.mn.us/(5e4l...5)/search.aspx

Ramsey county use this link
http://rrinfo.co.ramsey.mn.us/public...tic/index.pasp

Hope that helps!

[Navelinski]

You might want to check crime statistics and other neighborhood info as well as prices.

[Navelinski]

You're a teacher so here is your assignment... Check out the website for the Dept of Empolyment and Economic Development (DEEDS) MnPRO program: http://www.mnpro.com/ . Lots of good info on jobs and community statistics.

Sounds to me like you might want to try getting a job with Medtronic, Bermo, Dayton-Rogers Mfg, or one of the other high tech companies in the northern Twin Cities metro.

And sorry to say that you most likely will not find a single family home in a good neighborhood and in good condition for $136K. But you might find a townhome in that price range. How large of a place do you need? Can you do your own home improvements?

There is still hope! Don't give up!

[Navelinski]

Thanks Golfgal! I appreciate the post - and while there are always a few in every bunch - not all sales people are sleezeballs.

I got into real estate because I had a bad experience with my first home sale, I was totally taken advantage of, I felt that my agent couldn't care less, and I thought I could do a better job. So I became a REALTOR because I really enjoy helping people, I think house hunting is fun, I like a challenge, and I'm the kind of person who always roots for the underdog.

I think the first thing you should ask when interviewing prospective agents is why they got into the business in the first place. If they say money, RUN AWAY! There are plenty of good people who are realtors.

Thanks for the nice post!

Patti Ann

Originally Posted by golfgal

I think you will find that along with the higher priced houses come higher salaries, to a point. I know that many of the more experienced teachers in some of the larger districts do make in the $70,000 range but I do agree teachers are very underpaid for the most part.

Perhaps going to a career counselor would help or maybe even applying at a temp agency for professionals to "try" out some jobs so see what you like to do.

Another option with all your 'advanced' degrees would be to teach at the college level with your fantastic teaching skills.

Also, I don't pretend to know your financial situation but with interest rates being so low, you could probably afford more on a $70K salary then you think but again, I don't know your situation with car payments, credit card debt, etc.

If you think you can do well in sales, you don't have to be unethical to do the job. There is a great need for good salespeople that do well and are ethical. I know plenty of sales people that are not like you think they are.

I would also say that by the few posts here that perhaps it is your attitude with the world that holds you back more then anything. There seems to be about 1 million or so people that are able to afford houses in the Twin Cities metro area for what ever reason and many of them probably aren't as smart as you.

[Navelinski]

As of right now, there are 99 homes in the north metro (north of I-694) with 4 or more bedrooms in your price range (150k to 200K) listed on the RMLS. Most of these tend to be in the Coon Rapids, Anoka, Blaine, Fridley, and Spring Lake Park areas. There are good public schools in the area and I've never once seen a home with in any of these areas with steel bars on the windows.

Don't despair! Contact me if you want more help. I have lived in both the northern and southern suburbs of the Twin Cities. The northern suburbs tend to be more affordable.

Originally Posted by rochestercheesehead

I can't disagree that my attitude has held me back. Point well-taken. I had a very immature attitude until after I turned thirty. Since that time, it seems that my family has endured one crisis after another. I am currently referring to the year 2006 as "the year I finally became an adult."

Going back to school for training in a field that I find fascinating was a part of that process; I'm not getting any younger, but I'm not "old" yet.

Please forgive my sarcasm and anger. It tends to come out at times that I would be better off doing something more constructive, like sleeping.

I want to move to the Twin Cities because it is the economic engine driving the upper midwest and there are many opportunities available in my newly chosen field. I'm content with older homes, but I'd actually like to own a home for once where I don't feel like I'm settling. Four bedrooms are a must.

I don't believe that there is any such thing as absolute security--consider the recent murder on the outskirts of Waseca, a town with which I am very familiar since my in-laws live there--safety is relative. As long as I can live somewhere that I don't have to put up steel bars or worry that someone in my house will be hit by a stray bullet in a drive-by, I'll be content. If the area is nice and attractive but the schools aren't very good, I will find a way to send my kids to private schools.

So, any suggestions for areas in the $150,000-$200,000 range given my above comments?

Thanks!

[midwest456]

any reason the northern burbs are more affordable? is it that they are farther from the job centers of the metro?

[midwest456]

thanks for those links, navelinski!