Batteries Land Not Included
Of the 626 single family homes that sold in Minnetonka in the last year, a grand total of 3(!) fetched less than $135,900 — the asking price for the 3 BR/1 Bath home (pictured above) that just came on the market two hours ago.
So, what’s the catch?
I count five, actually:
One. The home is a foreclosure owned by Fannie Mae HomePath, so condition is a question mark (I haven’t been inside).
Two. The asking price doesn’t include the land underneath the home. According to the MLS listing details, the Buyer must enter into a 99 year land lease with the West Hennepin Affordable Housing Land Trust.
Homes Within Reach, the program sponsoring the sale, says that excluding the land reduces the value of the home by “approximately 35% to 42%” (sounds about right to me).
Three. Only owner-occupants who earn less than 80% of the median Twin Cities household income are eligible to buy the home.
Four. The Buyer only gets 35% of the appreciation when they sell.
Five. There’s no guaranty that the home will actually sell for the $135,900 asking price — that is, multiple offers could easily drive the price (much) higher.
Factoring in all of the above, is the home still worth pursuing?
At that price . . very possibly (really).
If you have interest or know someone who might who’s eligible, call my cell (612-710-3282), or email me at rosskaplan@edinarealty.com.
Ideally, today . . .
