More buyers are seeking homes in 'shadow market'

  • Article by: JIM BUCHTA , Star Tribune
  • Updated: April 14, 2012 - 9:00 PM

With inventory at historic lows, many Twin Cities house deals are happening behind the scenes, long before the properties hit the market.

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meghannwardApr. 15, 1212:13 AM

My family and I were featured in this months Money magazine for this exact situation. Our home is for sale and because we live in a popular family neighborhood we have 3-4 showings a day - totally unexpected in this market. People put ads in our HOA newsletter asking potential sellers to contact them if they're thinking of selling. In fact the family we bought this home from bought their home in the "shadow market"....they bought the house behind them. We could see the tracks in the snow from them moving 100 feet. The house they bought was never on the market. We're looking for a specific model once we sell our house. A woman got stuck in the snow outside our house, told us she lived in the model we want and just told us to call her once our house sells and we could make a deal

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bippy742Apr. 15, 12 8:42 AM

Maybe I didn't read the article well enough and missed something, but I'm surprised to hear that "inventory is at historic lows". There are still multiple foreclosures on every block.

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imichelleApr. 15, 12 9:00 AM

I too am confused. I thought making deals before going on the market would mean cutting out the agent, and therefore paying a lower net/receiving a higher net. But, if the agents are doing this, isn't it keeping the buyer from getting the best price from a competitive market?

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stingballApr. 15, 12 9:33 AM

So the Keller Williams agency that sold the downtown Minneapolis, river view condo for the full list price of $1.4 million "within days" got a $104,000 commission, assuming the normal 7.5%. That's alot of money to pay someone for just a few days work. I understand that they delivered a buyer to the seller at full price, but still alot to pay for just a few days work. The seller could have likely found this buyer themselves with just a little work on their part, which I think is one of the points of this article. Do a little work on your own and save $104,000? Alot of people would say "yes" to this. Even people who have alot of money.

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wordupApr. 15, 12 9:39 AM

There is a lack of quality listings in this market. Most houses for sale are either foreclosures which are not move in ready or older homes which still require a lot of work. If anyone is looking to move up in this market and sell a nice clean home which is updated, the only time that house is on the market is a rare case of someone having to move out of market due to a job move. A lot of the updated homes are not hitting the market I think because people think the market is soft and/or are not confident enough in the economy to upgrade their house. Some areas of the cities with good schools have not really witnessed the type of price erosion you read about either. It's still location location location. That never changed.

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