Older homes vs newer construction (Minneapolis, St. Paul: best neighborhoods, real estate market, insurance)

[Nernah]

My husband and I will be relocating to MN this summer from San Antonio. It seems like around here the older houses are more likely to have problems (largely related to mold, but sometimes electrical and structural as well). So when we bought our first house it was important to us that it be relatively new.

My concern is that if we limit ourselves to just newer construction we're really going to be limiting our options in MN. I'd hate to pass on a perfectly good house just because of it's age. And maybe this is more of a regional concern. Maybe houses in the St. Paul area have stood the test of time better than the ones here in TX. Maybe older houses in the midwest are actually built BETTER than the newer ones.

Wondering if anyone here could chime in on the pro's and con's of looking for newer construction (i.e., after 2000) vs homes that are maybe 50-60 years old. If it makes a difference, my job is in downtown St. Paul (husband works from home), and we're open to a broad spectrum of neighborhoods and suburbs.

[golfgal]

This is our first "newer" home, the rest of the houses we have owned or grew up in for that matter, were 1940 or older builds. They all have their pros and cons. Our 1920's Craftsman was my favorite house. The room sizes were just right, the closet space was more than enough and the woodwork was lovely. It was also the most expensive house to heat/cool and depending on when a house was upgraded, expensive to put in new appliances, furnace, etc.

Our least expensive house to heat/cool was our 1940 house, but we also put the most money into repairs in that house.

Our current house needs new windows--not a cheep repair, but still better than trying to maintain the look of a Craftsman house as far as cost goes. We also have a layout that I prefer here as well as bigger and more bathrooms--definite plus with 3 teenagers!!

For us it came down to schools. We didn't want to sacrifice schools for a "older home".

[jayhopethismeeturstandard]

Minnesota winters can be brutal on a home. I live in a house that was built in 1937 and it has some heat loss issues and structural issues that I'm not even going to look at because I will most likely be tearing the house down and rebuilding it. Newer homes are going to offer that piece of mind, yet one can ever be certain ( I hear that a lot of new homes are starting to show issues with pvc plumbling, chinese drywall, etc though I don't know if those construction trend problems extend this far north.) If you want an older home that has been completely renovated already plus the amenities of good schools, safe neighborhoods, and close commute than parts of south Minneapolis like Longfellow, Howe, Standish, Hiawatha or Minnehaha or even into certain sections of Bloomington.

[MichaelItman]

Hi Nernah:

Welcome to the neighborhood! What opportunities are you and your husband moving here for?

You ask a really good question and there's no way to answer it. Some older homes have issues, and there are newer homes that have issues. It would be a generalization to say that older homes are more problem-heavy. We live in a home, for example, that was build by the previous owners, who owned a lumber business, so this home, even though it's older (1966), is super solid and in great shape. At the same time, you could find a house from that year, or decade, with major issues. It's all about the individual house.

The most important thing - I agree with golfgal here - is to find a home that fits your other needs (school district, backyard, living space, etc), and then to work with a great inspector to find any problems that the house may have, whether it's new or old. If the inspection uncovers problems that you don't want to fix (or negotiate for the sellers to fix), you walk. The process may mean you have to go through a few houses but it's worth it.

Good luck!

Best,

Michael

[StanleyVegas]

I think window heat loss is one of the biggest issues with older homes. The previous owner of our 20s bungalow upgraded to double panes that are in the Craftsman style of the house (but are not wood frame so they might not comply in a historic district). It makes a huge difference though.

[Nernah]

Thanks for the feedback so far! I work for an insurance company that is based in St. Paul. Currently I'm working in a field office, but opportunities for advancement are limited here. So we're moving up there so I can be in the home office. I'm very excited about the move because I've been visiting there frequently over the last 6 years so I'm familiar with the area and know how great it is. Also, I already have a large network of friends and acquaintences through my job. My husband, unfortunately, is far less excited about moving. He doesn't know anyone and isn't exactly a fan of cold weather. And since he works from home, I really want to do my research so we can find the very best house for the money (around the 200k range).

[StanleyVegas]

I'm also a recent transplant from a warm climate (CA) who works from home. I use our front sunroom for an office. It's worked out really well. Good luck in your search!

[MichaelItman]

Nernah -

That's awesome that you're already familiar with & love our great state I'm sure your husband will fall in love with it too, over time.

There are a ton of great homes in the 200K range (Minnesota quality of life is high, and the cost of living is pretty low compared to the coasts, etc). You may find yourself looking at a fair number of "flips" for that price, but I wouldn't assume that's a bad thing. Yes, an investor bought & spruced up a home, but if they did it well, it can look stunning, be perfect, and be a great deal for you, all the while providing the investor the profit (because that's going to be there, if you're dealing with a good flip). Of course you can have poor flips too, and you want to look out for those.

There are definitely great older homes in the 200K range in a lot of different communities in Minnesota. You say your job is in downtown St. Paul, and you should find some really neat home opportunities in St. Paul proper as well as in the nearby suburbs. If I were you, to get a sense of what your opportunities are, I'd look at some of the best neighborhoods in St. Paul (Highland Park, Summit Hill, Merriam Park, Cathedral Hill, Macalester-Groveland, etc) and then nearby suburbs like Mendota Heights and Roseville. Unlike city living in some other cities, St. Paul doesn't feel "urban". It really almost feels like a hip suburb in itself. If you are looking for a neighborhood where your husband could leave the house & walk to a nearby coffee shop to work, etc, you're going to find that in St. Paul proper more so than in its suburbs. Might be something to keep in mind.

Any other questions about relocating here or the neighborhoods/homes you're interested in? I'd be happy to help.

And congrats again!

Michael

[maui-intoxicated]

To summarize the real estate market here...essentially there is a highway loop around the two cities, Saint Paul and Minneapolis. Buying a new construction home inside the loop will be a lot more expensive with lower availability then finding a newer home outside the loop.

New or old, all homes have problems. You will be given an opportunity to hire a property inspector prior to purchasing. This is the opportunity to back out of your transaction if there are unforeseen maintenance concerns found by the inspector.

I have lived in the Twin Cities most of my life, and when it came time to buy my home I looked for over a year until I found a decent home in the 200k price range as there was limited supply. This is INSIDE the loop.

Rush hour is really like Rush HOURS, with it starting at 7am-9am for the morning commute and clogging up on the way home from 4pm-6pm.

Hire a good inspector prior to purchasing they can be had for $250, and hire a realtor that KNOWS the neighborhood you desire...otherwise you will essentially just be hiring someone to open the door for you.

[golfgal]

Rush "hours"--really?? If I need to drive during the morning commute, as long as I have left my house by 7:00 AM or after 8:00 it is fine, unless there is a major snow storm or a semi accident blocking all lanes of traffic. There is a "bad" hour in the morning and a bad hour in the evening. Those that think traffic here is bad need to get out and experience other cities and try driving in their rush hours....