What’s New in The Shakopee Real Estate Market

Sorry, for not posting in a while, but it has been crazy busy lately getting out team website up, www.MnHomesForSale.com and we have been doing some blog posts recently on that website too. The school year is off and running anf my wife is officially back to work and in her new school, Jackson Elementary in Shakopee. Very exciting to have a new building and many new students as well.

The Shakopee real estate market has been extremely busy lately. It almost seems more like a spring real estate market rather than Fall. Shakopee real estate is booming when homes hit the market. It seems everything that is decent is selling within 30 days,  although the average days on market for Shakopee homes pending is currently at 140 days, which is down! 231 Shakopee homes are currently considered active in the Shakopee real estate market. Still an overwhelming amount of Shakopee short sale listings flood the market as 31 of those 231 are sold subject to bank approval. Good Shakopee homes are hard to find these days. I think we will see more Shakopee foreclosure listings hitting the market this fall. I know after talking with other Shakopee real estate agents with Remax that specialize in the foreclosure market that the banks seem to be holding back. There are great options purchasing some shakopee foreclosures such as Fannie Mae listings. You can buy a Fannie mae listing with only 3% down, no mortgage insurance no appriasal and the bank will agree to pay 3.5% of loan costs, awesome deal!

If you need any help searching for Shakopee real estate or have any questions make sure to reach out to us and we would be happy to help.

Shakopee Inventory Down, Shakopee Short Sales Up

The Shakopee real estate inventory seems to be heading lower and lower, however at the same time Shakopee short sales are increasing. The Shakopee real estate market is moving though. I sold a Shakopee foreclosure listing that I put on the market in less than a week and recently  sold a listing of mine on the west side of town on Madison the same day! I did have a buyer for the listing a few weeks in advance and did notify both parties prior to listing the home. With only 260 active homes on the market, good real estate is hard to find. Shakopee town home inventory also seems to be down with only 38% of the active listing classified as Shakopee townhomes. As mentioned in a previous blog, a frustrating stat shows again how few homes are available. Of the 260 active Shakopee homes on the market, 60 actually do have offers, but do still show as active and this does not include the 70 pending homes waiting to close. Those 60 are Shakopee homes that are either subject to inspection, another home or subject to bank approval (which is essentially short sale listings). That brings me to my next CRAZY set of stats including Shakopee short sales :

  • 75 of the 260 active Shakopee homes are short sales, 29% and a high percentage.
  •  If you include Shakopee foreclosures, 39.6% of the market is distressed, which is actually down thankfully.
  • Of the 200 remaining Shakopee homes without offers, 34 are Shakopee short sales, again another positive sign as we are down to only 17% of the market being short sale listings in Shakopee.
  • Only 32% of the remaining 200 Shakopee real estate listings are townhomes. Typically 42-48% of the total sales annually in Shakopee are townhomes.

I remember a time when it was hard to find Shakopee homes for sale under $200,000, today 92 of the 200 listings without offers are under $200,000 and 32 of those are single family homes. Only 36 homes are listed over $350,000 and 15 over $500,000.

 

Shakopee Foreclosures? Use the FHA 203k loan program

Like many other MN Homes, Shakopee foreclosures are just as prevelant. To  purchase some of those detressed foreclosure properties you need a LOT of $$$$ to repair the MN homes to bring them up to par, because the banks won’t lend the money to buy the house until the repairs are complete. I recenlty had a client use a great program for Shakopee foreclosures. The program is called the FHA 203k loan program and I used Wells Fargo in Shakopee to do the MN FHA 203k loan program we just closed on. There are a few other companies that do the MN FHA 203k loan program, but not all loan officers do, so make sure to check if you are looking in a price range that may need repairs.

More MN FHA 203k Loan Program Information

  •  The downpayment requirement for an owner-occupant (or a nonprofit organization or government agency) is only 3.5% of the purchase price and repair costs of the property.

The MN FHA 203k loan includes the following steps:
A potential homebuyer locates a fixer-upper and executes a sales contract after doing a feasibility analysis of the property with their real estate professional. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on loan approval based on additional required repairs by the FHA or the lender.

Find an approved MN FHA 203k loan officer

-Submit repair bids from A LICENSED CONTRACTOR, if you are not licensed, you CAN NOT do the work.

The appraisal is performed to determine the value of the property after all repairs are completed, they don’t need to be completed prior to closing, but they do the appraisal as if those repairs were completed.

If the borrower is approved through the loan officers underwriting , the loan closes for an amount that will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs. The amount of the loan will also include a reserve of 10% to 20% of the total remodeling costs and is used to cover any extra work not included in the original proposal.

At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs and improvements during the rehabilitation period.

The remodeling can begin after closing.

Escrowed funds with the title company on MN homes are released to the contractor during construction through a series of draw requests for completed work. To ensure completion of the job, 10% of each draw is held back; this money is paid after the lender determines their will be no liens on the property.

If you would like more information about the FHA 203k loan program, a good loan officer familiar with the process or Shakopee foreclosure list make sure to contact me.

Search all Shakopee Foreclosure Listings

Shakopee MN MLS Short Sales Are Selling, BUT…..

With all the talk about short sale homes in Shakopee many buyers are wondering what is going onin the current market place. I took a look at only the Shakopee short sales and what their numbers looked like so far this year accornding to the MN MLS. For those looking at the MLS online website, themlsonline.com is NOT the MLS, iot simply is a company just like Edina Realty, Remax or Coldwell Banker however they were grandfathered in to using the term MLS in their name.

SHAKOPEE SHORT SALE INVENTORY & SALES

Anyway accornding to the MN MLS there are a total of 286 homes in Shakopee listed, of those 286 homes listed 86 are Shakopee short sales. One common way homes are listed in the MN MLS, but not on other broker sites are homes that are consider “sold subject to third party approval” whihc means they are a short sale home waiting for the bank to say yes or no. The seller likely has signed the offer as they still own the home, but need approval from the bank. There are 40 homes in Shakopee currently listed as active that have this classification….annoying, I know. There are only 10 pending Shakopee short sale listings that are waiting to close and have approval from the bank according to the MN MLS. It seems half or 2 out of every 3 listings is a short sale which i found this statitic interesting: from January 1, 2011 only 26 Shakopee short sales have closed! Only 26 home in 6 months! With all the short sale listing out in the marketplace these banks need get their acts together.

PRICING OF SHAKOPEE SHORT SALES

I think the pricing of Shakopee short sales is what is contributiong to lower prices for the average homeowner. So many buyer avoid short sale in Shakopee because they can not wait the 3-9 month time frame many short sale homes require. Oddly enough I looked a one niche in Shakopee that has a higher sales price and lower days on market of short sale listings than traditional sales. Shakopee townhome short sales had an average sales price this year of $129,033  with 143 days on the market with only 12 homes closing since 1/1/11. 94 foreclosure and tradtional sales netted $109,531 with 155 days on the market. I do think the foreclosures contributed to bringing this price down, but I can’t explain the shorter time frame, that baffles me. Looking at single family homes brings numbers you would expect.  The short sale listings in Shakopee averaged a sales price of $183,511 with 261 average days on market where the traditional sales averaged a sales price of $221,627 and only 125 days on the market.

SHAKOPEE SHORT SALE REALTORS HELP

If you are looking for a Shakopee Realtor or real estate agent to help represent you in buying a home or selling your home make sure they have the experience required to help. Having a knowledgeable Shakopee realtor who know the ins and outs of the bank short sale process can be beneifical even when purchase as they can know the right questions to ask to make sure eve

Shakopee Foreclosure Homes

It seems so many homes I show now are Shakopee foreclosures that when you see a home with someone actually living there you are taken back. I showed a Shakopee foreclosure townhome today that was just listed and the bank had this place sparkling better than most Shakopee homes for sale. Shakopee bank owned homes are now taking it upon themselves to start painting, replacing carpet and make these homes ready for showings.

If you look at all Shakopee foreclosures and short sales there is currently a total of 137 homes for sale as of today. Total Shakopee homes for sale equals 293. Given those numbers, that represents a total of 46.8% of the total homes for sale in Shakopee to be Shakopee foreclosures or a short sale listing.

Breakdown those numbers further it appear more Shakopee townhomes are becoming Shakopee foreclsoures as 61.4% of all townhomes in Shakopee currently listed are Shakopee short sales or foreclosures. Only 35.5% of single family homes for sale in Shakopee are foreclosures or short sales.

Overall listing  inventory is down from that of last year, but I think you can expect listing inventory to rise being typically the market peaks in inventory in July and there will also be many Fannie Mae Homepath properties coming to the market over the next few months.

Shakopee Foreclosures

Digging through the Minnesota MLS this year may possibly be one of the largest year for Shakopee foreclosures to date. So far in 2011 there have been 28 foreclosure homes in Shakopee that have closed escrow.  36 Shakopee foreclosures are currently pending bring this years foreclosure total in Shakopee to 64 homes through only February. We are pacing over a home sold per day that is consider a Shakopee foreclosure! Now theoretically take that number and multiple by six, could that mean we are heading for 384 Shakopee foreclosures for the year?

Those Shakopee foreclosure numbers seem staggering being only 197 closed homes in Shakopee last year were foreclosures. We are heading for close to double those numbers and eclipsing the high of 331 set in 2009. Currently there are 54 homes in Shakopee that are active on the market and considered Shakopee foreclosures.

All of these numbers are only estimates being many Shakopee real estate agents often do not disclose the status of their Minnesota MLS listings or decipher if the home is a bank owned home, short sale or potential short sale. Why Shakopee real estate agent don’t disclose status can vary and it would be too time consuming to go through EVERY listing to get exact numbers

Although not perfect numbers you can see how the number of foreclosures in Shakopee have escalated since last year and how many buyers will have numerous opportunities this coming year.