Homes That Are Practically Worthless Right Now In Minnesota
About this video
Some Minnesota homes may look like a great deal but come with risks that can hurt their resale value. Here are five types of homes buyers should research carefully, from older properties and new construction to condos, limited-storage homes, and unusual modern designs.
Key takeaways
- Treat a home as a long-term investment: some homes that look like deals are hard to finance, insure or sell later.
- Older homes (common in Minneapolis, Saint Paul, Richfield and St. Louis Park): budget for what you can't see, such as wiring, plumbing, drain tile and the sewer line. Orangeburg fiber sewer pipe, used from about the 1940s to the 1970s, can collapse.
- A sewer camera inspection costs about $200, while a sewer line repair from house to street can run $15,000 to $20,000, according to Jason. Get one on almost any home.
- New construction: compare the builder's lender offer with another lender side by side. Know whether a rate buydown is permanent or temporary (a 2-1 buydown rises in year three). Get upgrades and incentives in writing, ask about future phases and association dues, and still hire an inspector.
- In one Lakeville example, a new $365,000 townhome with a 5% builder rate had a lower payment than a 20-year-old $300,000 townhome at almost 7%.
- Minnesota's new-home warranty runs 1 year on most of the home, 2 years on plumbing, electrical and heating systems, and 10 years on major structural defects. Schedule a walkthrough before the first year ends.
- Condos: you share the building's costs. Check reserves and special assessments, and know that lenders must approve the building, which can limit future buyers.
- Homes with no basement (slab-on-grade) and very unusual or ultra-modern designs can work well, but they narrow the pool of future buyers and can complicate appraisals.
Questions this video answers
Should I get a sewer scope inspection?
Yes, especially on older homes. It costs about $200 and can find a damaged or collapsing sewer line, a repair Jason puts at $15,000 to $20,000, before you buy.
What does the Minnesota new home warranty cover?
One year for defects in workmanship and materials, two years for plumbing, electrical and heating systems, and ten years for major structural defects, starting at closing.
Is a builder's low mortgage rate a good deal?
It can be, but compare it with an outside lender's offer side by side, check whether the buydown is permanent or temporary, and look at the price and closing costs, not just the payment.
Read more: Buy a home · One-level living
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on September 15, 2026; check the current numbers in our market reports.
