Liberty On Bluff Creek townhomes in Chanhassen (Bloomington, Eden Prairie: short sales, foreclosures)

[mnota]

We signed a PA to buy a 3 BR/2.5 BA townhome in this community. Closing is scheduled at about 3-4 months. Community looks pretty decent, with a lot of trails and bluffs around. Looking at the recent resales in the community (~ 5-10% lower than we signed up for), we are sort of having second thoughts .
Sales seemed pretty brisk the last month when we signed, but looks like they haven't sold any units (in our block at least)since then. Looking for opinions about this community or townhomes in Chanhassen in general.

[Thegonagle]

Chanhassan is far from the city center, townhouses are more difficult to resell than single family homes, and there's a glut of already-built homes on the market. Developers/new home builders in the outer burbs (and everywhere in the TC's, really) are struggling right now.

This is a terrible time to buy new construction--looking at resales vs. new in the same developments will prove that point over and over.

That's my opinion. It sounds harsh, but if you can back out without losing a lot of money, I think you should... Unless you really think it'll be a great place to live that will work for you for a long time. (But buying a new home shouldn't be like buying a new car, where you lose 10% just by taking possession.)

[mnota]

We are not really looking to be near the city center. I work in the tech industry, which mostly seems to be concentrated around Eden Prairie, Minnetonka or there about. Initially started looking at single family homes in Chanhassen, but the ones we liked (about 2200+ sq ft, 0-10 year old vintage), seemed like we would be spending close to 50% take home on mortgage. Shakopee seemed doable, but just did not appeal to me, too many foreclosures/short sales.

[Thegonagle]

That makes sense, if you want something big and new, and this fits your budget. It is, after all, a home first and foremost. It's the place you live, not necessarily an investment.

I figured you must work around the SW metro. But the off-center location and the fact that it's a townhouse does have its downside as far as resale value/ease of selling is concerned, IMO.

I don't mind older properties myself so long as the floor plan works and the property has appeal. The trees and shrubs are more mature, and the long-term character of the neighborhood is established. Buildings are built to last a very long time, but living in a home that's not going to have many major repairs, or require remodeling for many years is a huge plus, too.

[golfgal]

I don't know anything about that development specifically but I agree, there is a glut of townhomes all over the metro but so what. You liked it enough to buy, you are getting a new place like you want. Chanhassen is an easy commute to work and a pretty area of the state. Say you live in it for 5 years and sell it for what you paid for it, you really aren't any worse off than you would have been if you rented. Congratulations on the new place.

[mnota]

Our thoughts were similar to golfgal's, when we signed up in Chanhassen. I guess, just wanted someone to reiterate it for us.

When we realized, our budget ($200 to $220k) and requirement wouldn't buy us much of a single family home in the SW areas. We toned it down to town homes, since we are on a single income now and would like to have that flexibility with a toddler. Initially felt Eden Prairie would be doable and given the demand in the area, town homes could re-sell better as compared to other areas. But EP either has high end townhomes $270k to $290k or higher $500k, especially near Bearpath golf course or Pioneer Trail or mid-range ones $170k to $220k (Hennepin Village), which were smaller in size. The ones that we did like in EP were selling really quickly ~1 week to 10 days.

And boy isn't the concept of Eden Prairie extended or what, it can mean anywhere from near Shakopee/Chanhassen/Minnetonka/Bloomington. I quickly realized the EP I was familiar with, was just Eden Prairie Center area and thereabouts.

[golfgal]

I would say that you will have a better chance for resale in Chanhassen vs EP a few years down the road. With the brand new high school, the new 212 and the beauty of the area, Chanhassen is an up and coming area.

[1stpontiac]

Buyer's remorse can strike anywhere When we bought our first house, I made myself not look at house listing for a couple months afterward, because I knew I'd see something that would make me second-guess our decision.

[QuietBlue]

Originally Posted by golfgal

Say you live in it for 5 years and sell it for what you paid for it, you really aren't any worse off than you would have been if you rented.

*If* you get what you paid for it, yes (and taking into account repairs/upgrades/maintenance as well). While I'd say that's definitely more likely now than it used to be, and the area mentioned is a good bet, I would't treat it like a foregone conclusion either. I know people who bought homes in 2007 thinking they were only going to see gains in their home values from that point, who aren't too happy about it now.

[mnota]

One of my realtors said, buying a house these days is like buying a car - depreciation is guaranteed, you just need to decide how much, your moving can offset the loss - raise in pay, sweet deal on a dream house or not getting killed . Needless to say he was not very popular with his clients.