12 Things to Know Before Buying a Lake Home in Minnesota

Key Takeaways

• It’s important to understand specific regulations pertaining to lakefront property.
• Impervious surfaces like driveways, patios, and roofs are usually capped at 25% of a shoreland lot.
• Riparian rights govern water access and dock use, but the details vary by lake and by property.
• Working with an agent who understands Minnesota lake homes for sale helps you navigate zoning, permitting, and inspections that a typical home purchase doesn’t involve.

Why Lake Living Looks Different in Minnesota

Minnesota is home to more than 10,000 lakes (depending on how you count!), and browsing lake homes for sale in Minnesota can feel overwhelming fast. A waterfront property brings its own set of requirements, including shoreline zoning, well and septic systems, dock permits, and other considerations that may not apply to a typical suburban home. 

At Excelsior Realty, we’ve spent more than two decades helping buyers find lake homes for sale around Lake Minnetonka. We interact with a lot of first-time buyers so we’ve picked up on what tends to take people by surprise in the process.

Before you fall for that view of the sunset and the coolth of the water, here are 12 things you should know before buying a lake home in Minnesota.

What Should You Know Before You Buy a Lakefront Home in Minnesota?

These are the key things to understand and check before buying a lake property in Minnesota:

1. Understand shoreland zoning: According to the Department of Natural Resources (DNR), in Minnesota, shoreland rules generally apply to land within 1,000 feet of a lake’s ordinary high water level. Local governments administer these requirements through zoning ordinances that can affect setbacks, construction, septic systems, and other property improvements. 
2. Know the impervious surface limit: Minnesota’s shoreland rules generally limit impervious surfaces to 25% of a lot’s total area. This includes the following:
   1. Rooftops
   2. Driveways
   3. Decks
   4. Patios
   5. Sidewalks
   6. Other surfaces that prevent water from soaking into the ground. 

Local ordinances may set stricter limits. 

3. Check your water access rights: Buying a lakefront property generally gives you certain rights associated with owning land along the water, but those rights have limits. Check the property’s deed and title documents to understand any shared or private access arrangements, easements, or restrictions. You should also confirm local and state requirements for docks, lifts, and other structures before assuming you can use the shoreline exactly as you wish.
4. Ask about well and septic systems: Most lakefront homes for sale in Minnesota run on private systems, so an inspection before closing can save you a costly surprise.
5. Look into dock and accessory permits. Most lots allow one water-oriented accessory structure within the setback zone.
6. Evaluate the shoreline condition: Check the shoreline for signs of erosion and unstable banks. Are there any areas where soil is washing into the lake? A professional shoreline assessment can identify existing problems and flag repairs you may need to budget for.
7. Consider winter access: A lake home that feels easy to reach in Minnesota’s summers may be much harder to access in our infamous winters. Ask who maintains and plows the roads and whether nearby homes are occupied year-round. This can give you a better sense of what living at the property will be like outside the summer season. 
8. Review flood insurance needs: Check the property’s flood zone before buying. Your lender may require flood insurance based on the property’s flood risk, even if the home has never flooded. If coverage is not required, consider the property’s actual flood risk when deciding whether to purchase a policy. 
9. Understand the lake’s classification: Minnesota’s DNR places lakes into different classifications based on their physical characteristics and potential. This classification helps determine which shoreland standards apply to the property, including structure setbacks and other land-use requirements. Before buying, check how the lake is classified and check out the rules that apply. 
10. Factor in total ownership cost: Budget for dock installation and removal, higher property taxes, and seasonal maintenance most inland homes don’t require.
11. Work with an agent who knows lake property: Buying a lake home means you have to track a million different parts. An experienced local agent can help you break down shoreland rules, property access, maintenance considerations, and other details that may not be obvious from a listing.
12. Check the property’s history: Ask about previous flooding, shoreline repairs, septic work, dock permits, and other major improvements. Review permits and inspection records where available so you know which work has been completed and whether any unresolved issues could affect the property.

Local Guidance Makes the Difference

If we just mentioned things you’re hearing about for the first time, don’t assume the worse! The road to homeownership can be a bit of a climb, but in every possible way, what’s waiting for you makes it worth it. 

Every lake and county interprets these rules we discussed a little differently, so what you truly need on your journey is some local expertise. 

At Excelsior Realty, our team has helped buyers evaluate lake houses for sale in Minnesota across Lake Minnetonka’s 14 surrounding communities. Our team serves (and are locals from) communities like Orono, Excelsior, Eden Prairie, Minnetonka, Wayzata, Minnetrista, and more.

Find Your Place on the Water with Excelsior Realty

Buying a lake home in Minnesota takes more homework than a typical purchase, but it’s entirely manageable with the right team backing you up. 

Excelsior Realty has helped families around Lake Minnetonka find their forever homes since 2004. If you’re exploring lake homes for sale in Minnesota, contact our team at (952) 474-2999 or hello@excelsiorrealty.com, or browse current listings near Lake Minnetonka. 

Our office is located at 386 Oak St, Excelsior, MN 55331.

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