MASTERWERKS LLC BUILDING SERVICES Custom Home Building, Transformations, Renovations
Purchased: 8/2014
Re-Sold: 2/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 1,100,000
$ 1,025,000
— $ 75,000
$ 66,625
— $ 141,625
$ 1,359,000
$ 1,228,500
— $130,000
$79,852
— $ 210,352
Purchased: 1/2014
Re-Sold: 2/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
Purchased: 6/2014
Re-Sold: 6/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 1,440,000
$ 1,275,000
— $165,000
$82,875
— $ 247,875
Purchased: 12/2016
Re-Sold: 4/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 1,499,000
$ 1,325,000
— $174,000
$86,125
— $ 260,125
Purchased: 1/2015
Re-Sold: 8/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$1,348,236
$ 1,011,920
— $336,316
$65,715
— $ 402,091
Purchased: 8/2005
Re-Sold: 1/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 1,795,000
$ 1,475,000
— $320,000
$97,175
— $ 417,175
Edina Single Family Homes 1992-2017
The properties depicted in these charts not only registered severe losses but also did not benefit from normal market appreciation and inflation factors during their holding period.
Average Sale Price
As Compared To Inflation Adjusted Price
Appreciation Rates
Inflation Rates
Purchased: 3/2008
Re-Sold: 8/2018
Etimated Loss: Estimated Selling Costs:
Minimum Total Loss
$ 1,850,000
$ 1,262,000
— $588,000
$82,030
— $ 670,030
Purchased: 6/2007
Re-Sold: 2/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 2,108,000
$ 1,292,000
— $816,000
$83,980
— $ 899,980
Purchased: 7/2005
Re-Sold: 4/2018
Loss:
Estimated Selling Costs:
Probable Total Loss
$ 2,325,000
$ 1,322,000
— $1,003,000
$85,930
— $ 1,088,930
Purchased: 12/2012
Re: 4/2018
Estimated Loss: Estimated Selling Costs:
Minimum Total Loss
$ 2,300,000
$ 1,795,000
— $505,000
$116,675
— $ 621,675
Purchased: 8/2006
For Sale: 4/2018
Estimated Loss: Estimated Selling Costs:
Minimum Total Loss
$ 2,275,000
$ 1,299,000
— $976,000
$84,435
— $ 1,060,435
Information deemed reliable but not guaranteed
Most people assume a new home or remodeling project is a sound investment.
Not when you make mistakes like these.
Knowledge is Power
Instead of making informed choices, many homeowners base decisions about building projects on faulty assumptions, misguided whims, and ignorance about today’s norms in housing revitalization. The lack of proper guidance impacts everything from minor remodels to new construction. The resulting financial losses and penalties can be extremely severe, with no second chances or do-overs. In fact, in 2016, over 80% of new homes in Edina (built since 2005) lost an average of $217,000 upon resale.
To illustrate the catastrophic effect of poor building choices, here are a few current examples of reconstruction resales, occurring between January 1st and August 31st of 2018. As you can see, these owners suffered substantial dollar losses, offsetting gains they might have anticipated through normal appreciation or inflation – assuming any investment potential existed in the first place.
The various professionals involved might have steered these clients towards choices less damaging to their financial futures, but for whatever reason, that didn’t happen.
There is, however, a powerful antidote to avoiding such disasters: Knowledge.
By studying Edina properties that have suffered severe losses, and ascertaining why, MasterWerks has the requisite knowledge for protecting our clients from similar losses.