Pick of the Week: Woodbury MN “Diamond in the Rough” at $479K (Stonemill Area)

Hey — Dale here with Woodbury Real Estate Group. In this video, I’m kicking off a new series: “Pick of the Week.”

Over the past 20+ years, I’ve helped people make a lot of money in real estate, and it’s not luck — it’s because I use a simple formula. I’ll break that formula down in another video (I want to do it with a PowerPoint so you can clearly see how I evaluate homes).

But the core idea is this:

✅ If life happens and you need to sell later, will other people want this house?
(5 years from now… 10 years from now… whenever.)

That resale question is everything — especially in the luxury market, where some owners build what they personally love… but what the market doesn’t.

The “Resale Rule” Most Buyers Forget

People move for all kinds of reasons:

• job relocation
• divorce
• family changes (more kids, fewer kids)
• health needs
• lifestyle shifts

So even when you’re buying your “forever home,” you still want a house that’s easy to sell later.

This is where some luxury homes run into trouble:
just because someone had the money to build something, doesn’t mean someone else will want to buy it later.

That’s why I like homes that follow certain “sellable rules,” like:

• practical bedroom layout (ex: bedrooms grouped together)
• functional floor plan
• desirable features buyers consistently pay for

This Week’s Pick: 11169 Walnut Lane, Woodbury MN

My pick of the week for the Woodbury market is:

✅ 11169 Walnut Lane, Woodbury
Current price: $479,000
Original price: $519,000 → dropped to $479,000
Days on market: about 49 days
Year built: 2008
Garage: 3-car
Taxes: around $6,500

That price drop is a big signal:

Motivated Seller

When you see a meaningful drop like that, it usually means:

• the seller is motivated
• the market has pushed back on their original number
• there may be room to negotiate further

Why I Like This House (Even If It’s Not Perfect)

This home checks a lot of “resale safe” boxes — and it has upside.

1) Built in 2008 (And Why That Matters)

This is a little controversial, but here’s my experience:

Homes built before the crash were often built with better materials and fewer corners cut than some builds right after the crash, when builders were trying to compete with foreclosure pricing and had to re-learn how to build cheaper.

Does that mean every 2008 house is better than every 2012 house? No.
But in general, that “post-crash adjustment period” mattered.

2) 3-Car Garage = Always a Plus

You’d be shocked how much buyer demand increases just because of the garage.

More storage, more flexibility, more future resale appeal.

3) Big Layout + Finished Space

This one is impressive on paper:

• about 3,100 finished sq ft
• finished lower level
• 5 bedrooms total
  • 4 bedrooms on the upper level
  • 5th bedroom in the basement
• 3–4 bathrooms total (as laid out in the video)

That bedroom layout is huge for resale, especially for families.

4) “Diamond in the Rough” Upgrade Potential

Let’s be honest — it’s not updated to today’s style standards.

But that’s why it’s interesting.

Here are the value-add moves I’d consider:

• repaint walls and modernize tones
• paint or refinish cabinets
• replace countertops
• rework/expand the island (you can make it bigger and add seating)
• update lighting and fixtures
• improve the TV/fireplace wall so it fits modern sizes
• add a fence (or at least plan for one)

This is the kind of house where cosmetic updates can create serious equity.

Notes on the Layout (Boot Bench + Functionality)

One of my favorite “livability features” is a proper boot bench / drop zone — and older layouts often didn’t design for it well.

This house doesn’t have the perfect setup right when you walk in, but you can create a better drop-zone area near the garage entry.

That kind of practical tweak matters to real buyers.

Master Bath: Easy Equity Opportunity

The master bathroom appears solid, but dated.

A modernization path could include:

• larger shower conversion
• reconsidering the tub setup (some buyers prefer a statement tub + bigger shower, others want a huge shower and no tub)
• keep the dual vanity (always a resale win)

Also: laundry hookups are on the main level (visible hookups/venting noted), which can be a plus depending on how the home is set up.

Why $479K Is a Big Deal Compared to New Construction

To put the value in perspective:

New construction nearby (example referenced in Cottage Grove) is running closer to:

✅ around $575,000

So you’re looking at nearly a $100,000 difference just to get a brand-new build.

And here’s another key detail:

FHA Buyer Pool & Loan Limits

You mentioned the FHA loan limit around $529K (with 3.5% down). That matters because:

• Homes priced under key financing thresholds often attract more buyers
• More buyers = stronger resale demand

So a property like this can sit in a “sweet spot” where the buyer pool stays larger than higher-priced options.

Bottom Line: Why This Is My Pick of the Week

At $479K, with:

• 3-car garage
• 2008 build
• 3,100 finished sq ft
• 5 bedrooms
• strong resale layout
• and clear cosmetic upside

…it’s the kind of home I’d call a diamond in the rough.

Could it go a little lower? Possibly.
But even at $479K, it stands out as a strong value play compared to what it would cost to buy something similar brand new.