I'm going to sell my lake home in 2010 (Minneapolis, Minnetonka: short sales, foreclosures)

[wease]

I'm on the west side of Minneapolis...near Lake Minnetonka. I've been trying to figure out how people price their lake homes. Do they look at price per foot of lakeshore? If so, I've seen anywhere from $5,500 to $33,000 per foot of lakeshore. The price per square foot on these properties range from $250-750 per square foot.

I have nearly 6,000 square feet and about 350 feet of perfect west facing lake shore. My home has just been completely remodeled and the yard is extremely unique. How do you determine what you should price your home at when there really aren't any 'true' comparables?

[acrylic]

You might want to wait another year to ask this question, considering the market has fluxuated (sp?) so much lately, it's quite unpredictable. If the economy gets better, home prices will go up, but if it gets worse, they'll go even further down. It's best to get an appraiser for these types of things.

[tvdxer]

Well, ($5,500*350)+(6,000*250) is equal to $3,425,000, and ($33,000*350)+(6,000*750) is equal to $16,050,000. I'd probably consult an appraiser rather than City-Data on a property of this value. Either way, you'll be making some serious bank

[MN-Born-n-Raised]

Originally Posted by wease

I'm on the west side of Minneapolis...near Lake Minnetonka. I've been trying to figure out how people price their lake homes. Do they look at price per foot of lakeshore? If so, I've seen anywhere from $5,500 to $33,000 per foot of lakeshore. The price per square foot on these properties range from $250-750 per square foot.

I have nearly 6,000 square feet and about 350 feet of perfect west facing lake shore. My home has just been completely remodeled and the yard is extremely unique. How do you determine what you should price your home at when there really aren't any 'true' comparables?

For starters. It is extremely save to assume that prices will continue to fall through 2010 and into 2011. The more expensive it is, the more it will fall because those have not adjusted as much. Lower Home Prices in Two Years? (http://www.pmi-us.com/video/david_berson_jul_09.html - broken link) I'm not saying it will necessarily fall in spots of AZ or CO as an example. But I am saying that in MN specifically on expensive lake property it will. You will get differing opinions on this one. We are a couple of short years away from finding out who is right.

To date, spendy homes have been holding tight on the MLS. Well over 1/2 are still at 2006 pricing. So far their wallets have been thicker to wait out the storm. But all that means is they are watching the market slide while they have heald their ground. Putting it another way, expensive properties have not woken-up to the reality that their prices went down. Not a one of them are selling at 2006 pricing. And if they get offers, the bank will look at the comps and they won't get the money for a loan so it better be a cash sale. All I am saying is looking at listing prices meant something in 1950-2006. Now. All of the inventory that is over priced can only skew reality.

The people are hoping for the listing price but that is simply is not going to happen. So all you should be looking at is what properties have sold for (not looking at listed prices).

We are re-grouping with all of our homes (I'm going smaller; one on Lake Minnetonka and one in AZ). The reality is things that are SELLING are priced at around 2003 pricing which is 30% off of peak 2006 pricing. There are over 70 homes in foreclosure on Lake Minnetonka as we speak. That is unheard of in one of the most prestigious MN areas. That is not the entire foreclosures; more are pending. That is just the ones that are listed and there are several other short sales coming online.

If I was you, I'd contact the best agent in your area (#1 producer) and not just any agent. Have them do a market and list it in 2010. Because if my crystal ball is correct and I have been studying this topic intensely, it will fall a bit more. Maybe as much as 20%. Think 2000 pricing especially on the more expensive and larger properties. Rest assure, I am not alone and people are downsizing.

As a side note. The land is what is falling faster than anything else as it the land experienced the mega run-up. I'd recommend pricing it right and taking the advice of a couple of the very best agents in that specific area.

I can PM you the agent / broker I have been using. She knows the lakes area very well and is very very good at what she does. PM me if you would like her name.

It sounds like you have a beautiful home!