For Real Estate Folks: Advice on Resale Value, Areas, and Buying? (St. Cloud: how much, houses)

[tinky]

Hi all,

My DH and I are about 1-2 weeks away from making an offer on a house in MN (we are relocating from the east coast). We're looking at lower cost homes, nothing above $300,000. Also, we're looking a bit north of the Twin Cities as DH will be working in the cities and I will be commuting to St. Cloud. We've narrowed down a short list of our fave houses (we've made 2 trips to look at properties recently) but none stand out as "The One." So, we're trying to decide based on some criteria, which is were my request for advice from you MN real estate pros comes in. :-)

The houses on our "short list" are located in Maple Grove, Buffalo, Elk River, and Otsego. What are the predicted future markets for these areas? In other words, in 5-10 years if we were to re-sell, would any of these areas be in slow/bad markets? (I know Maple Grove will likely continue to do well due to its proximity to the cities, so I'm more concerned with the other areas.)

My second question is, I know the deal about "location, location, location." How much does that trump other issues? One of our short list houses is in Buffalo directly across from the lake with a beautiful view and land that can't be built upon between the house and the water (so the view won't be lost). The house on the lot, however, is rather ugly and dated, even compared to other houses in the area. The house is about 1700 square feet and the asking price is about 225,000. DH, and architect, thinks we should jump at this house largely due to the waterview lot. I have a hard time imagining moving into a house that I personally find so unappealing. Is he right? Is the value of this lot in a few years likely to be our best bet? What about compared to our other areas, say, Maple Grove? I've read some forecasts that Buffalo is expected to expand in the next few years as another MPLS bedroom community but don't know how much of this to believe. In the meantime, as DH and I are debating our favorites, I'd rather move into one of the more updated and/or newer houses on our short list.

ANY advice/comments from those of you more knowledgeable about the area(s)--such as other things we should be considering--would be GREATLY appreciated.

Thanks in advance!

Tinky

[Minnehahapolitan]

As I have stated before, I am no expert. Maple Grove is pretty predictable since it is more built-up. There will be less new construction to compete with than in Elk River, Otego, et. cetera. Lake lots in Minn. are sought-after. Lakes will often developed twenty to thirty years before the surrounding area. If you find a rough-gem on a lake that you can quickly fix up with a good architect, you will have a one-of-a-kind home on a lake lot. Contrast that with a tract home in Elk River. I know which one I'd want. Buffalo is on the cusp of development (how long is debatable), but people will drive a little farther if they are on a lake. Its the midwestern answer to the beach in Calif. Also, as far as commutes go, I wouldn't want to drive from Maple Grove to Saint Cloud every day. If I was in your spot, I would take the Lake home in Buffalo and fix it up nicely. Maple Grove would be my second choice. The best of luck on your move.

[golfgal]

I would have to say that Maple Grove has hit it's big growth spurt, it is still growing but not as much so the property values are not going to increase as much. If you have deeded access to a lake in Buffalo I would snap that up in a heartbeat. With St. Cloud growing south and the Twin Cities growing north, Buffalo is going to be a pretty popular area in 10 years. It is also that much closer to St. Cloud making your commute less while not really adding that much to your DH's commute.

If the house is structurally sound and needs cosmetic work, that is easy to change, the location isn't. The past two houses we have owned we have built in some remodel time before moving in-a month in both cases-so we were able strip wallpaper/paint/refinish floors, etc. without worrying about furniture and belongings, is that a possibility for you?

[tinky]

Thanks for your insight, Minnehahapolitan and Golfgal. Part of me knew, deep down, that DH was probably right about the Buffalo house--he keeps telling me I need to not expect a house to be perfect when we move in but to look at the big picture. And I had a bit of a typo in my post--my DH _IS_ the architect, LOL, so he's pretty stubborn about these things when he puts his mind to it. (Obviously, we put to rest the stereotype many ppl have that all architects are rich and live in grandiose houses--most that we know absolutely don't--they just _build_ those houses that other folks can afford, LOL!).

Anyway, so it's interesting to hear the two of you "objective" folks make pretty much the same argument as he does. Also what's interesting is your take on the commute. Our realtor keeps trying to subtly push us towards Maple Grove. He (and others) have said my commute won't be any issue no matter where we are because I'll have the "easy commute" because I'll be going against traffic. Also, it's pretty obvious he is not big on Buffalo; DH and I both get the vibe he thinks it's in the boonies or the sticks (makes comments about how far away it is from everything, which doesn't seem the case to us at all). Plus, we live in a small New England town now and love the small town feel, which Buffalo appears to have.

Anyway, thanks again!

Tinky

[Minnehahapolitan]

The commute from Maple Grove to Saint Cloud is nearly 50 miles. It doesn't matter if you are on the autobahn when it is that far. 55 runs pretty smoothly into the city for your husband. Granted, it will be many years before Buffalo is contiguous with the cities. I suppose your realtor is somewhat correct in those regards, however, there is no prob. with that. Even if the house is falling in, You have 75,000 to fix it up before you hit your price ceiling. Your husband will surely do a nice job and make a unique home on a lake. You have gold there. Maple Grove is lovely, but unless you get a house on Bass Lake, there is nothing particularly special about the homes there. Again, its your choice, but I think if you ask most, they will tell you to buy in Buffalo.

[golfgal]

If you prefer more of a small town feel then Buffalo is the place to be. No, your commute won't be any easier/harder, just shorter and in the middle of January that might make a huge difference. I remember when I was in college and Buffalo seemed SO far from the cities but now that is not the case, it is pretty much constant development up to that area now.

[tinky]

OK, so now we've found some MLS listings in Zimmerman, Greenfield, and Hanover.

Any feedback on any of these areas? Since Greenfield and Hanover are just down the road from Buffalo and Zimmerman is north of Elk River, I'm guessing Zimmerman would be the worst for commuting.

Thanks again.

T

[Minnehahapolitan]

Unless they have acreage, I would go for Maple Grove then. There are alot of quasi-estatish type properties out there, and they are lovely. There isn't a whole lot else in that Greenfield/Hanover/Dayton area. If you are just getting a house on a city lot there, thats going to be a harder sell for me. I'm open to discuss this with someone, but thats my two cents.

[golfgal]

I would say that the lake view lot/house in Buffalo is still the way to go unless these properties in the other towns are ON a lake.

[BorderGirl]

I'd go with the house in Buffalo too. You really can't beat those lake views and it breaks my heart that my uncle is selling his lake home.