Looking to Buy a Home in North Dakota?

What to Know About the North Dakota Housing Market

Before you begin buying a home in North Dakota, it’s smart to understand how the local market works. Unlike some high-density states, North Dakota often offers larger lots, fewer bidding wars in certain areas, and a mix of urban and rural inventory. However, rural properties may come with added considerations—septic systems, well maintenance, rural zoning, and longer commute times.
Median home prices and inventory levels in North Dakota vary significantly by region—so working with a local agent who knows your target county is key. Also, seasonal factors (winter weather, snow removal, heating costs) matter more in this state than in some others.
Getting familiar with these local dynamics will give you confidence and a competitive edge when buying a home in North Dakota.

Here are 7 Tips to Help Make the Process a Little Smoother!

Buying a home has long been considered to be one of the most exciting times of a person’s life. Here are a few tips that can help give you an edge if you’re gearing up to find your dream home!

No. 1 Find the Right Agent for Buying a Home in North Dakota

When you’re buying a home in North Dakota, the first and most important step is selecting the right local agent. A dedicated and knowledgeable professional will help you navigate the state-specific real-estate market, attend to details unique to North Dakota homes (such as rural septic systems or seasonal maintenance), assist you in negotiations, coordinate inspections, and protect your best interests when it comes to price, location, and property condition.

While sellers already have a listing agent working on their behalf, your buyer’s agent must actively represent you, especially during the offer and negotiation phases, to ensure you don’t miss out in a competitive local market. Choosing the right agent early can dramatically reduce your time, stress, and risk when buying a home in North Dakota.

We have an incredible team that is ready to ‘talk real estate’ with you!

No. 2 Prep Your Finances

Whether you’re just beginning to explore the idea of buying a home in North Dakota or you’ve been planning for some time, it’s essential to understand the financial side of this process. Getting pre-approved for a mortgage, calculating a realistic down payment (and knowing what local lenders expect in North Dakota), and being aware of inspection, appraisal, and closing costs specific to this region will put you ahead of many buyers.

Get Preapproved:

The loan pre approval process is so important to get started on, even before you begin looking at homes. Finding a lender and initiating the process is a sure way to set yourself up for success, especially in a fast paced market– like we have now! Having that dollar amount that you are approved for will ensure that you are looking at the right price point. You will also know what to expect for monthly payments and what is affordable for you as a buyer. In addition, a seller will want to be sure that you will be able to purchase the house if you make an offer, and that comes through submitting a preapproval letter with your loan.

For more on preapproval:

5 Things You Need to Be Preapproved for a Mortgage

Down Payment:

The average down payment in America is equal to about 6% of the borrower’s loan value. However, it’s also possible to buy a home with as little as 3% down or even less, depending on your loan type and credit score. Some buyers are able to purchase a home with no money down if you qualify for a USDA loan or a VA loan. But, different loan types have different minimum down payments, and it’s important to know ahead of time how much you’ll need in hand so you can be prepared. A lender will help you determine which loan and options are best for you.

Build Credit:

Continuing to build good credit, saving, and avoiding any big purchases or job changes are all great ways to get a leg up in this area while preparing to purchase. Also, having no late payments, as well as multiple credit lines with at least 24 months of history can build credit.

Inspection Costs:

A home inspection can cost anywhere between $300 to $500 and could cost more if you choose to include add-on inspections such as radon, air/water, septic inspection, sewer line inspection, etc.

For more information and tips on preparing your finances:

How To Get Your Finances Ready to Buy a House | Credit Karma

Your Best Home Buying Checklist

No. 3 Know What You’re Looking For When Buying a Home in North Dakota

Prior to diving into home listings, especially for North Dakota, take some time to clearly map out your “must-haves” and your “wants”. This might include preferred counties (rural vs. urban), lot size (important in North Dakota’s expansive landscapes), number of bedrooms, garage or workshop space, and whether you need proximity to colder-weather maintenance or flood-prone zones. Defining your needs will help focus your search and keep your budget on track while buying a home in North Dakota.

Defining what you need and what you want in a home will make the searching process easier and more productive. In addition, understanding what your needs are in a home will also help you better focus on what your budget should look like so you can begin preparing for the realistic market inventory.

There’s nothing worse than wasting valuable home-searching time by being distracted by homes that neither fit your lifestyle or budget because your search isn’t aimed appropriately.

No. 4 Looking at Potential Homes

With your agent and your wish list in hand, you’re ready to start viewing potential homes—especially important when buying a home in North Dakota, where inventory may differ from more populous states. Be transparent with your agent and plan for in-person visits (online tours help, but local conditions matter).

In North Dakota, it is common for buyers to view multiple homes over several weeks before making a decision—being patient now can save you regrets later.

Get Ready to Get Patient.

Homebuying is a very important investment, and you want to make sure you find one that’s right for you. There’s nothing wrong with taking your time to do research with your agent and giving yourself the freedom to view multiple homes before settling on one. According to the National Association of Realtors, the typical home buyer searches for up to 10 weeks and views up to 10 different homes before finally purchasing. 30+ Essential Real Estate Statistics – 2021 Edition

Viewing Homes Online:

While using technology to research and identify potential homes can be helpful, it is still essential to view homes in person to be sure that it is truly the right home for you. Being able to inspect the home for yourself will give you more information and confidence in negotiation and purchasing decisions later on.

For more info on what to look for when viewing a home:

Top 10 Things To Look For When Buying A House | Quicken Loans

6 Ways to Totally Snoop the House You Want to Buy

Home Inspection Checklist for Buyers – NerdWallet

No. 5 Offers and Negotiations

After you identify the home you want, making the offer is your next big move, especially when you’re buying a home in North Dakota. Your agent will guide you through drafting the contract, including any contingencies specific to North Dakota markets (such as seasonal inspections, floodplain disclosures, or rural zoning). Understanding how offers and counter-offers typically work locally will place you in a stronger position.

But, a quick reminder that offers often get outbid or fall through for a variety of reasons- save yourself a little heartache, and try not to get too emotionally invested in a place before it’s yours.

Your agent should shine in this area and walk you through the process and review the contracts and their clauses to be sure that the offer is accurate and everything is set. This is a great time to note if you will be requesting any allowances from the seller on the purchase agreement. Some buyers opt to build in closing cost allowances, which must be included in the purchase agreement verbiage. Discussing this with your agent and lender, in advance, is important.

For tips on making an offer:

Everything You Need to Know About Making an Offer: 15 Tips for Homebuyers

Once the offer is written, your agent will present it to the sellers agent who will then present it to the seller. The seller will either accept, reject, or respond with a counteroffer. If a counter offer comes back, this is when your agent swings into action and should competently help you through the negotiation process!

For more on the negotiations and counteroffer process:

Homebuying Negotiations: Responding to a Counteroffer – My Home by Freddie Mac

Once your offer is accepted,  you are now officially under contract! Now it’s time for inspections, appraisal, or anything else built into your purchase agreement timeframe.

No. 6 Inspection

The inspection step is particularly important when buying a home in North Dakota, where you may encounter property issues tied to climate, older heating systems, well and septic systems, or even basement flooding in certain regions. Conducting a thorough inspection gives you leverage in negotiation, helps identify hidden repair costs, and empowers you to move forward confidently.

A home inspection is a professional examination of a property and allows a chance to discover any problems with the property that the seller may have failed to disclose, as well as whether there are any impending problems that may lead to expensive fixes later on after you close. This inspection also gives you valuable insight that can help better inform your purchasing decision. It can also provide you with potential leverage to use in your negotiations or may even deter you from buying the home in North Dakota!

In the section about preparing your finances, we talked about the inspection- and preparing for that cost out of pocket.

For more information on a professional inspection:

Importance of Home Inspection Contingency

Do You Really Need a Home Inspection? | How Does It Work?

No. 7 Finishing Touches and Closing

You’re almost there, finalising the purchase when buying a home in North Dakota means completing the title search, signing closing documents, paying closing costs and taxes, and receiving your keys. Make sure you understand local closing-cost norms (for example, state-specific transfer fees or title insurance requirements) and schedule utility setup to avoid any gap in service once you move in. Congratulations, you’ve completed the journey of buying a home in North Dakota!

Closing:

A title search will need to be conducted to review all legal documents related to the property and ensure there are no claims against the title. You want to make sure that you are getting a clean title to your new home in North Dakota and that there are no legal surprises. Purchasing Title Insurance is a great idea and a necessary safeguard for you in the event there are any errors in the records or mistakes in the process of review.

Finally, closing costs, legal fees, and taxes will be paid as part of the settlement. You will receive the property title and copies of all the crucial documents – as well as the keys to your new home!

Closing On A House: Step-By-Step | Rocket Mortgage

We hope these tips were helpful in preparing you for buying a home in North Dakota!

We would love to have the opportunity to assist with every step of the way.
Call today to visit with our team of real estate professionals, let’s talk real estate!