Downtown Condos take longer to sell

The downtown condo market has mostly recovered from the housing market crash and great recession. Distressed condos were bought by investors who rented them out. I have sold a few condos that were owned by investors and are now owner occupied. There is a lot more downtown than there was during the recession, especially more luxury rentals.

It takes longer to sell a condo in St. Paul than it does to sell other types of homes. An average of 40 days to sell a condo anywhere is the city,  vs. 25 days to sell a fee standing type single family home and  it takes an average of 44 days to sell a downtown condo.

months supply
Months supply of condos

There is a 3.4 month supply of condos on the market downtown. The average sale price is around $211k. Right now there are 57 units on the market which is about the same as September 2016.

People who do not know downtown should tour several condo buildings before deciding where to live.

Housing for all

construction
Couple walking

An older but probably not elderly couple walk by the construction site where apartments are being built. The advertising on the sign in front shows a young man on a bike and lists some amenities including yoga and fitness center and bike storage.

The apartments are “smart” and there will be a rooftop terrance grill and lounge too. I work with young people and older people who are interested in living in Lowertown and most are attracted to the area, and the buildings in it by the same amenities.

Right now it seems like we need more housing of every type. Affordability is also important as rents remain high and wages remain fairly flat.

There is no such thing as identical condos

view
view from a River Park Loft

In a condo building it isn’t unusual to find unite that have the same floor plan and are the same size as the condo’s directly above and below. Yet they are not identical because they are on higher or lower floors. They are similar but not identical.

The condo on the same floor but down the hall may not be the same size or have the same floor plan and it doesn’t have the same view.

Each piece of real estate is unique even if it is in a building with similar units. A 900 square foot condo on the 25th floor may be worth 30% more than the same unit on the 2nd floor. The unit that overlooks the patio won’t be as valuable as the unit that is the same size and has the same floor plan but has a view of the river.

A north facing unit with all of the windows on the North side may be less valuable than the similar South facing condo.

Homes can be similar to other homes. Maybe they were built the same year using the same materials and are facing the same direction. If the homes are in different towns or neighborhoods the values are not the same.

Home buyers usually don’t have any problem understanding the differences.

If you can read you can buy a condo

MN Capitol
Minnesota Capitol building

My headline is a little silly. I recently helped an investor buy a condo and the agent who was representing the seller seemed to know that the buyer had to have some association documents but did not include all the required documents.

Selling a condo is a little more involved than selling a regular home. The good news is that all of the documents are listed on a addendum that is part of the purchase agreement. Buyers should reference the addendum and check to make sure that they have all of the documents.

Under a consumer protection law Minnesota condo buyers have a ten day period to review the association documents and can withdraw their offer without penalty if they do not like what they see.

Buyers should actually read these documents.

Here is a list of documents as outlined on the condominium, townhouse and cooperative addendum:

DOCUMENTS: Seller is required to furnish Buyer with the following documents relating to the Association and/or the Master Association, if applicable, before conveyance of unit:

38. (1) (a) a copy of the  declaration (other than any CIC plat), (b) the  articles of incorporation, (c)  bylaws, (d) any  rules

39.  and regulations for the association, and (e) any  amendments or supplemental declarations;

40. (2) a copy of the master declaration, articles of incorporation, bylaws, and rules and regulations, if the common interest

41. community is a member of a master association;

42. (3) (a) a Disclosure Statement (for initial sale of property) and all amendments thereto required by MN Statute

43. 515B.4-101, including a balance sheet of the Association, current within 90 days, and the projected annual budget

44. of the Association and a statement identifying the party responsible for preparation of the budget; or (b) Resale

45. Disclosure Certificate (for resale of property) and all amendments thereto required by MN Statute 515B.4-107,

46. including the most recent regularly prepared balance sheets, income and expense statements and current budget

47. of the Association. The Resale Disclosure Certificate from the Association must be dated not more than 90 days

prior to the date of this Purchase Agreement or the date of conveyance, whichever is earlier.