Shakopee Townhome Update

There are many townhomes in the Shakopee real estate market. Of the 301 current active listings 126 are townhomes, twinhomes or condos which represent almost 42% of the current market inventory. The Shakopee real estate townhome market is very affordable now compared to past markets especially after seeing values drop significantly over the past few years. Currently of the 126 active Shakopee townhomes, the average sales price if hoovering just over $129,000 for a 2+ bedroom 2 1/2 bath townhome built in 2001 with over 1550sqft. 4-5 years ago these Shakopee townhomes would have sold in the $190’s. If you are searching for a home you need a way to narrow down all your choices. The best options in the Shakopee real estate market I feel are in the 3+ bedroom 3+ bathroom townhomes with at least a 2 car garage built after 2000 and priced competitively under $125,000. If you were to narrow down the Shakopee real estate market with that search criteria you would still have 15 homes. To view all Shakopee real estate listings or homes in other areas, go to my website www.MinnesotaListingSearch.com

Shakopee Real Estate Market Hits Bottom

That is a question many Shakopee real estate buyers are asking these days. It’s hard to look at this market and think that we are not close to the bottom if not there. It is true the Shakopee real estate market will see many more foreclosures over the next few years, however currently most pricing is cheaper than if you were to rent real estate in Shakopee.

The other day I looked at a home behind St. Francis hospital in the Pheasant Run neighborhood. The home was price at $162,500 and really all that needed to be done was paint and carpet. This home was built by Keyland Homes and years ago in the Shakopee real estate market this home would have sold upwards of $300,000. Today, given values of homes in shakopee, this homes was priced almost 50% lower.

Generally speaking if you were to take estimates of a full price offer of $162,500 with the buyer putting 3.5% as a downpayment, current taxes at $2678 and annual insurance of $900 the estimated monthly payment would be only $1225 given a 4.75% interest rate. That shows you right there where the Shakopee real estate market is it today, a bargin. If 5 years ago the value for this home was even $275,000 and interest rates were one percent higher at 5.75% and taxes the same, your payments would be a staggering $2025.

This shows you what type of buying power there is out there in the market today. I see many Shakopee townhomes that sold in the $190,000’s a few years ago now priced under $100,000. You could buy these townhomes today, rent them out and cashflow the homes at $300-400 per month! The opportunities are endless and we may not know truely if we are at the bottom of the Shakopee real estate market, but we do know now more than ever pricing is great.  So if you are starting your Shakopee real estate search today, have your loan officer run the numbers and realize truel how low interest rates are in this market and what it means to your botom line.

STOP before you buy a MN townhome!!!!

Don’t panic!!! MN townhomes can be great, I lived in one for five years and loved it. With almost 10 years of experience now and seeing a more depressed real estate market than in the past, competition is tough. The Shakopee Real Estate market has a large inventory of quality townhomes ripe for the picking. I walked into one MN townhome last week that was PERFECT for $95,000, built in 2006!!! Now most first time buyers tend to lean towards townhomes rather than single family for a few reasons. 1) they don’t want to do yard work 2) they don’t want to buy everything to do yardwork 3) pricing typically is lower 4) you generally can buy a newer townhomes without needed repairs.

In the aggressive market we are in with so much more buying power than in the past, I now advise clients when looking at MN townhomes to try to look for four things 1) two car garage 2) At least three bedrooms, ideally also with an additional loft space 3) at least three bathrooms. 4) basement There are many reason for looking

Private Master Bathroom

When looking at townhomes in MN, having a private bathroom may be nice for privacy, living and for resale. Townhomes in MN typically have two bathrooms, a half bath on the main level of the home and then  full bathroom shared with the bedrooms on the upper level. Usually the only exception I see to this is with many one level townhomes in Minnesota where I will usually see a full bath bath in either the master or somewhere else on the main level and then also a 3/4 bath as the reciprocal. I think finding

Three Bedrooms and an Additional Loft

I like to try and find townhomes in MN with three bedrooms for a few reasons. I see a lot of buyers grow out of townhomes a lot quicker than the anticipate, and having a third bedroom buys them more time. Obviously given the market you are buying a lot lower than most buyers did at the peak, and that buys you more flexibility as well. If for some reason you could not sell, as a lot of people can’t in the current market, you always can turn to renting the home out. Having the third bedroom would easily pocket you more money per month and make it easier to rent.

Two Car Garage

The larger the garage, the better.One garage stalls and MN townhomes don’t mix well with the current market because there is SO much inventory with a two car garage. Even with a two car garage you might not be safe. Builders will literally cram a garage that is just as wide as the 16 foot door and call it a two car garage. Especially for couples with two larger cars, this can present a problem you don’t realize until you come home from closing and try to unload things. In an ideal world, try to find a 22-24 foot wide garage. Depth & Height can also cause problems for someone with a large truck or van. I have had many clients test the garage to see if their truck can fit, only to find out it does not. When looking to resell, this just might eliminate some of your buyer pool.

Basement

Tornado!!! Hide under the…stairs??? Well, Minnesota bring us tornados every year and thankfully most do not touch down to create too much damage. Regardless it always gives us a little more peace of mind heading under ground. Another benefit to MN townhomes that have basements would be they typically feel more like a house as there is multiple living areas for different members of the family.