5 Things You Must Know Before Visiting the Minnesota Parade of Homes

5 Things You MUST Know Before Visiting the Parade of Homes

The Minnesota Parade of Homes is exciting. You get to walk through beautiful new houses, explore floor plans, and imagine what life could look like in a brand-new home.

But here’s the thing most buyers don’t realize: the Parade of Homes is a sales environment, not just an open house tour. If you’re even thinking about building, going in without the right knowledge can cost you money, flexibility, and leverage later.

In the video below, we break down the five most important things to know before you step into a model home, especially if new construction is on your radar.
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Key Takeaways Before You Go

• Builder sales reps represent the builder, not you
  
  
• Builder incentives often come with fine print
  
  
• Model homes are heavily upgraded (and pricey)
  
  
• Builder contracts are very different from resale contracts
  
  
• Visiting without a strategy puts buyers at a disadvantage
  
  

Does the Builder’s Sales Rep Represent You?

When you walk into a Parade of Homes model, the sales rep greeting you is friendly, knowledgeable, and helpful, but they work for the builder.

Their role is to:

• Protect the builder’s interests
  
  
• Maximize profit and favorable terms for the builder
  
  
• Guide you toward the builder’s preferred options
  
  

They are not there to negotiate for you or explain downsides.

The good news? Having your own real estate agent doesn’t cost you extra. Builders typically already price buyer representation into their homes. Skipping an agent doesn’t save money, it just means you’re on your own.

Are Builder Incentives Really a Good Deal?

“$20,000 in free upgrades!”
“Special financing if you use our lender!”

Builder incentives can sound amazing, and sometimes they are. But many come with strings attached, such as:

• Higher interest rates over time
  
  
• Required use of the builder’s lender or title company
  
  
• Limited or inflated upgrade options
  
  

The real question isn’t “How big is the incentive?”
It’s “What am I giving up in exchange?”

This is where having someone compare options, run numbers, and read the fine print matters.

Why Do Model Homes Look So Much Better Than the Base Price?

Model homes are designed to impress, and they do.

But what most buyers don’t realize is that:

• The finishes you love are often not standard
  
  
• Kitchens, flooring, and lighting can include tens of thousands in upgrades
  
  
• The base-price version may look very different
  
  

Before falling in love, always ask:

• What’s included in the base price?
  
  
• What costs extra?
  
  
• What are the most common upgrade traps?
  
  

Knowing this upfront helps you budget realistically and avoid surprise costs later.

How Are Builder Contracts Different From Resale Contracts?

New construction contracts are not the same as Minnesota resale purchase agreements.

Builder contracts are typically:

• Written by the builder’s attorneys
  
  
• More restrictive on buyer timelines and exits
  
  
• Heavily weighted in the builder’s favor
  
  

Key areas that often surprise buyers include:

• Deposit requirements
  
  
• Change order policies
  
  
• Construction timelines
  
  
• What happens if prices, rates, or materials change
  
  

Understanding what you’re signing before you sign it can save a lot of stress down the road.

Why You Shouldn’t Visit the Parade of Homes Without a Plan

The Parade of Homes is fun, but serious buyers should treat it like research, not just entertainment.

A smart strategy includes:

• Researching builders ahead of time
  
  
• Taking notes and photos
  
  
• Asking direct questions about pricing and incentives
  
  
• Talking to an agent before you tour
  
  

Once you register with a builder, your options can become limited. Having guidance early keeps your choices open.

A Minnesota-Specific Perspective on the Parade of Homes

In the Twin Cities and surrounding suburbs, new construction often comes with:

• Seasonal build timelines affected by Minnesota weather
  
  
• Neighborhood HOA rules that vary widely
  
  
• Local lender incentives that look good short-term but cost more long-term
  
  

Minnesota buyers also face competitive demand for certain builders and lots. Knowing how local builders operate, and which ones align with your goals, can make a big difference.

Related Reading

If you’re exploring new construction or early-stage planning, these may help:

• 3 New Home Construction Pitfalls and How to Avoid Them
  
  
• Buy & Sell a Home at the Same Time
  
  

Thinking About Visiting the Parade of Homes?

If you’re planning to tour the Parade of Homes, or already have, getting guidance early can help you avoid costly mistakes and make confident decisions.

Ann and Scott Breuer with First Choice Realty Solutions help Minnesota buyers compare builders, understand incentives, and navigate new construction with clarity.

If you’d like a no-pressure conversation before you go (or before you sign anything), reach out and we’ll help you build a smart plan, before the sales pitch starts.