Now, THAT's Patience

But, Does She Have Grandkids Yet?"

The duplex at 21xx Irving Ave. South just Northeast of Lake of the Isles in Minneapolis' Kenwood neighborhood originally came on the market in Spring.

Spring, 2007 -- that is.

Asking price: $1.2 million.

After some short intervals off the market, and a couple intervening price reductions, it's still for sale today.

Current asking price: $900,000.

Given that the current tax assessed value is $614,000, and that assessed value these days often serves as a de facto ceiling on prices -- especially for properties needing updating -- you'd guess that a little more patience is in order.

P.S.: Even if the "value is in the land, " as the Listing agent is claiming, $900k still appears to be a rich price.

P.P.S.: Perusing the listing history on MLS, I noticed that the Seller appeared to be on their second agent.

Then I looked more closely: same agent, but different last name (she apparently got married).

THAT's how you know something's been for sale forever.

$700k Below Tax Value

Not $700k -- $700k Below Tax Assessed Value

Where: 1415 June Ave., South Tyrol Hills in Golden Valley

What: 4 BR/5BA home built in 2002 with almost 5,400 finished square feet.

How much: $799,900 asking price; tax assessed value: $1.504M

When: originally listed for $1.679 million in March, 2009

Who: Listed with RE/MAX Results

Well, 1415 June Ave. (pictured above) certainly looks like a deal.

So what's the story?

I haven't been in, so that's a big caveat.

However, the combination of lender approval (it's a short sale), needed repairs, and a hefty tax bill (almost $24k annually, but certain to come down) aren't helping.

Still, I'm not aware of a home sporting a bigger discount from tax assessed value currently on the market in the Twin Cities.

Selling Price as % of Tax Assessed Value

Tax Assessed Value as Benchmark

No, I don't have any hard data backing me up (and don't have the time to compile it), but at least anecdotally, it sure seems that there's a correlation between year built/last sale, and fair market value.

Here it is:

The newer the construction date/last sale, the higher the percentage; the older/less recent, the lower.

Put another way: the reliability of tax assessed value fades the older a home is and/or if it hasn't sold in awhile.

So, for example, a 2009 townhome with a tax assessed value of $200k is likely worth pretty close to that.

By contrast, a 1975 townhome occupied by the original owner, with the same tax assessed value, probably has a fair market value quite a bit lower -- as much as 20% less, or $160k.

Updates (or lack thereof); nearby competition (or lack thereof); location, etc. all affect -- but don't alter -- the basic relationship.

Great Location, Cheap -- Why?

What's the Catch? (Hint: There's 2)

Where: 31xx East Calhoun Parkway in South Minneapolis

What: 5 BR/4 BA with 4,500 FSF on .29 acre lot

How Much: originally listed for $925k on 9/21; just dropped to $825k yesterday

Who: Broker - Edina Realty; Agent - James Keane

Even in a soft market for upper bracket homes, a 4,500 square foot home, on a .29 acre lot -- overlooking Minneapolis' Lake Calhoun, no less -- stands out.

So what's the catch, besides what some might say is the plain curb appeal?

Looking for Catches

The home doesn't appear to be dated or run-down; in fact, the interior pictures are actually quite flattering.

And no, it's not a foreclosure or short sale.

So what, then?

There is a high-rise tower immediately to the north looming over the home (and no, it's not in the pictures).

Not a huge deal, perhaps, but not exactly an amenity, either,

Catch #2

The other catch -- at least until the taxes catch up to the lower valuation? (Like many expensive Twin Cities homes now, this one is listed for well below the tax assessed value.)

An almost $17,000 annual property tax bill.

In truth, property taxes are a looming issue for many, many other upper bracket homes as well, but particularly in Minneapolis (by way of comparison, you'd expect an $800k Edina home to have a $10,000 property tax bill, give or take).

Real Estate Bargain Bin

Minnehaha Falls Deal

Where: 45xx 47th South (just north of Minnehaha Falls in Minneapolis)

How much: list price: $224,800; tax assessed value: $379,500

What: 3 BR/2BA 1948 two-story with 2,150 FSF

Who: listed by Almost Free Realty

When: came on market 10/22/09

No matter how cheap the asking price, it's not necessarily available at that price if it's a short sale.

That's because the bank(s) that hold the mortgage are in the driver's seat: unless they agree to accept less than what they're owed, there's no deal. Then, the home progresses to foreclosure.

Which is in fact what happens something like 75% of the time with short sales.

So, what's eye-catching about the home pictured above is an asking price more than 40% below tax assessed value -- plus the fact that it's not a foreclosure or short sale (loudly trumpeted on MLS).