There are many reasons to live along the Northshore, as well as to vacation or live seasonally.  By visiting my community links, you will find photos, links to business and activities that will captivate and intrigue you.  The hiking, snowmobiling, jogging, snowshoe, and biking trails are plentiful.  Gift shops, specialty shops, seasonal activities abound from Duluth to Grand Marais.  Lake Superior is the largest of the great lakes and gives way to many majestic sunsets, boat traffic, fishing and more.  The splendor of the sandy beach or ledgerock make it a great place to enjoy. 

Many new townhome and condo developments are being constructed as well as resale availability for prospective northshore buyers.  There are also rental programs at some of the areas that allow a portion of the rent when your unit is not in use, to come back to you, so that you may offset your investment/payments.  There are townhomes in Knife River, Duluth, Beaver Bay, Two Harobrs and on up the shore.  You need only decide how far you want to travel up and settle in!  Prices and association fees do vary but I am here to provide you with the information on the association rules, fees, and other such info.

Lutsen ski resort is a popular attraction as is the town of Grand Marais, while the smaller towns of Two Harbors, Silver Bay, Beaver Bay have the ore boat traffic, gift shops and great food establishments.

Buying a Home on the North Shore

Achieve your dream! You’ve vacationed on Minnesota’s North Shore and wanted to own your own place. Now read on to learn what you need to know to be happy with what you spend and what you spend it on.

 First, ask yourself what’s most important.

Is hearing the lake from your home or sitting by it essential?  Or would a good view but not on the shoreline work for you? (Shoreline properties can cost two or three times the price of a similar home with a view but which is across the highway from the lake.) Don’t want to do exterior maintenance when you’re here or do you enjoy taking care of your property? Is having city water and sewer critical?

  What’s available, what will it cost and what do I need to check out?

 ¨ Shoreline land on which to build. Not much remains, but it is available. It will cost at least $1,000 to $2,000 per shoreline foot and some special properties may cost more. Most vacant land is not connected to municipal water and sewer; some have a working well and “mound” septic system installed; most do not. 

¨ Houses on the shoreline. Their prices depend mainly on shoreline footage and type of shoreline but the quality of the house can be a factor. Most houses will have wells and septic systems. Some owners have been drawing their water directly from Lake Superior for many years. Currently, homes with 200 or more feet of shoreline footage are priced at $600,000 and up.

¨ Townhomes and condos by the shore. Most have been developed by a resort and the units are located on resort grounds. A few are independent developments, although the a management and/or rental pool arrangement with a nearby resort. As with any townhome or condo ownership, you will pay a monthly association fee that covers property insurance on the building (you buy coverage on your contents), management services, exterior maintenance, repairs/renovation, trash removal and maintenance of a pool and spa if present. Always ask the amount of this fee, how much of it goes into a reserve fund to pay for major repairs or renovations and exactly what else it covers. The price per unit depends mainly on the quality of the units and grounds, facilities, a unit’s particular view, number of bedrooms and square footage. Thus, the price range is quite wide, typically $360,000 to $850,000.

¨ Houses on the “off-lake” side of Highway 61 but with lake views. Some include shoreline across from them that’s not deep enough for a home but which the owners can access for leisure time right by the lake. Often these are very nice homes. Prices are $325,000 and up. 

¨ Land on the off-lake side of Highway 61 on which to build. Some are on the wooded ridgeline with sweeping views of the lake. (25K to $100K per acre depending on location)

¨ Land, townhomes, cabins and separate homes well away from Lake Superior (although some may have distant views of it). A river or creek may run by or through the property or it may be located on a lake. Often these have acreage in the two figures. Prices vary widely.

 What About Property Taxes?

Property taxes vary a great deal, depending on the location of a particular property. Factors affecting property taxes include:

 ¨ The budgets established by city, county and school district. 

¨ The tax base. Much of Cook and Lake Counties is in state or federal ownership or county tax forfeit lands. There’s not much industry up here, an obvious good news/bad news situation.

¨ Whether property taxes are diverted to purposes other than general revenue. For example, there may be a special taxing district set up to pay for creating city water and sanitary facilities. 

¨ Seasonal vs. homestead classification (there's a common misperception that homestead doesn't reduce taxes much any more but it does!).

¨ Changes in state laws. For example, the state has altered what goes back to cities/townships from state revenue and this has affected some cities and townships more than others, for various and complicated reasons..

¨ The value equalization situation--the values applied to properties of similar type, size, etc. in any given taxing jurisdiction. Minnesota law requires the assessor to have estimated market values at actual market value levels, within a parameter of 90% to 105%. As sales occur, the assessor reviews those sales prices and adjustments are made to be more reflective of actual market and sale prices within the city. valuations.

¨ Often a city's board of appeal will ask appealing owners if they'd sell their property for the value they think should be placed on it. Technically, that's correct, since the assessed value should be the actual market (sales) value. However, if other properties are being valuated at a lower percentage of actual market value than yours, you are subsidizing them. Newer properties or properties that have just changed ownership often are valued closer to actual value than older properties because the sales prices are known to the assessor. The current tax assessors are conscientiously trying to correct these disparities, but it takes time, as explained above.

¨ The real estate agent should be able to tell you exactly what the current property taxes are on a property you’re considering. Ask if it is homesteaded or seasonal class.

Renting Your Home When You’re Not Using It

 Some buyers need to rent their homes to cover some of their out-of-pocket costs. Resort-affiliated properties usually offer a rental program. Be sure to ask how much of the rental goes to the resort for managing the program and whether there are any additional fees you must pay. There are a variety of other ways to rent your property. Ask your agent. The downside of renting is that you can’t leave your personal belongings in your home (or must move them to a locked closet or basement), there may be more wear on your furnishings and carpet and you lose some flexibility in your own usage. Of course, you must pay income taxes on your rental earnings.

  Checking the Internet

More and more buyers are researching homes on the Internet before hooking up with a particular agent. Many brokers have web sites. Some are informative, some are sketchy. Do a search for “Lake Superior properties.” (Our site can be found at: BeWiserCallKaiser.com and includes featured properties, some with “virtual tours” and all with photos, and a lot of information.)  There are many community links, county and city plus many points of interest for activities and placed to visit while you learn about the Northshore and its many offerings.