Even if you have bought and sold many homes in the past, each state has its differences. Of course brokerages also have their differences, but here are some key things that come to mind about buying a home in Minnesota.

  1. Minnesota has broker reciprocity. This means Realtors can show and sell homes listed by other Realtors and real estate companies, and Realtors and their clients have access to all listings in the MLS regardless of who is the listing agent.
  2. Seller pays commission to buyer’s agent on behalf of buyer.  The amount the seller is paying the buyer’s agent is included in each MLS listing, and means buyers rarely pay any direct agent commission. However, be aware what your contract states your agent will be paid… sometimes the amount the seller is paying isn’t enough to cover it and you will have to make up the difference.
  3. Minnesota has dual agency.  This means that the same brokerage can have a fiduciary representation agreement with both buyer and seller in a transaction, but cannot advocate for one party over the other and cannot disclose anything confidential regarding price, terms or motivation. Buyer and seller must agree this arrangement is ok with them.
  4. Attorneys are rarely involved in Minnesota closings. Realtors have a fiduciary relationship with clients and handle transaction details and negotiations. Title companies handle the closing of the sale.
  5. You must have financing pre-approval or verification of funds for cash purchase before you make an offer on a property. In our market, financing approval is addressed before, rather than after an offer. You should have a pre-approval letter which means your income, credit score and down payment funds have been verified… rather than a pre-qualification letter, which basically means it ‘looks good’ that you will qualify but it hasn’t been verified.
  6. Most Minnesota homes have basements. In Minnesota, most buyers love having basements… great for storage and extra living space. But basements can be cool and damp so pay attention to how they are heated and what steps have been taken to prevent moisture intrusion.
  7. Home Warranty is addressed in the Minnesota real estate purchase agreement. This means you will make a decision while writing your offer as to whether your new home will be covered by a home warranty… and if so, who will pay for it.
  8. Arbitration is part of every Minnesota purchase agreement. You will have the option to decide ahead of time to accept or reject arbitration by a real estate arbitrator as a way to resolve any potential disputes that may arise after closing as an option instead of litigation.
  9. Most homes are sold subject to inspection, usually completed within 10 days. Several communities in the metro area, including Minneapolis and St. Paul, require homes to be inspected by a licensed evaluator before they are offered for sale. This inspection is ordered and paid for by the seller. In addition, most buyers order and pay for their own private inspection. After the inspection you can choose to simply proceed to closing, ask the seller to make some repairs or make a price adjustment to cover the cost of repairs, or cancel the agreement and have your earnest money refunded.
  10. According to the Minnesota Department of Health, 2 in 5 Minnesota homes have radon levels that pose a significant health risk. For this reason, most homeowners include radon testing in their home inspection.
  11. You can buy a home contingent upon the successful closing of another home.  This means you don’t have to wait until after you close on your current home to get under contract for a new home. You could conceivably close on both homes within days of each other, possibly even the same day.
  12. There is no waiting to get the keys to your new home. Sellers usually get their proceeds and buyers usually get the keys to their new home right at the closing table so you can move into your new home right away.
  13. Homestead your primary residence by December 1 for tax credit. If this will be your primary residence homesteading could give you a tax credit… amount varies based on the price of your home. Homestead filing doesn’t cost anything and is done only once for as long as you own the property, recorded once a year with filing deadline of December 1.

Sharlene Hensrud, RE/MAX Results – Twin Cities Realtor

HomesMSP Team – SharleneJohnAngela Minneapolis-St. Paul Neighborhoods

RELATED POSTS

About Sharlene Hensrud

I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

Related Posts

Furnace, AC, electrical, plumbing no longer warranted by seller in Purchase Agreement to be in working order at time of closing

New MN real estate forms went into effect this month, and a significant change is the removal of default language in Minnesota purchase agreements that the seller warrants the heating, air conditioning, plumbing and electrical systems to be in working order at the time of closing. This also caused the elimination of the AS IS addendum..

Read More
Real estate market - young couple looking for real estate to rent or buy an apartment

Who is present at the final walkthrough?

The final walkthrough is when the whole homebuying process comes full circle and you usually end as you started… most of the time with only the buyers and their Realtor present in their new home. It takes place shortly before closing, and is when buyers check to make sure agreed upon repairs have been made and the home.

Read More

Remodeling ROI – Cost vs Value Report 2011-2012

Average remodeling costs dropped again for the third year in a row, although more slowly this year. Nationwide costs decreased 6.9% in 2009, 2.3% in 2010 and only 1.9% in 2011. Average project cost in the Minneapolis-St. Paul area for 2011 was $44,840. However, overall return on investment dropped more due to continued volatility in.

Read More