Underwood Homes under $600,000

Welcome to Underwood, Minnesota, a charming town nestled in the heart of Otter Tail County. Known for its picturesque landscapes and friendly community, Underwood offers a serene escape from the hustle and bustle of city life while providing easy access to modern amenities. With its rich history and vibrant local culture, this quaint town is perfect for families, retirees, and anyone looking to embrace a slower pace of life.

Underwood boasts a variety of outdoor recreational activities, thanks to its proximity to beautiful lakes, parks, and nature trails. Whether you enjoy fishing, hiking, or simply soaking in the natural beauty, you'll find plenty of opportunities to connect with nature. The town is also home to a welcoming community spirit, with local events and gatherings that foster a strong sense of belonging.

For those considering a move to Underwood, you'll be delighted to know that there are numerous homes available for under $600,000. From charming single-family residences to modern townhouses, the housing market here offers a diverse selection that caters to various lifestyles and preferences. Many of these homes feature spacious yards, updated interiors, and easy access to local amenities, making them an ideal choice for families or individuals seeking comfort and convenience.

With its affordable housing options, stunning natural surroundings, and a close-knit community, Underwood is truly a hidden gem in Minnesota. Come explore the possibilities and find your dream home in this delightful town!

Newest Underwood Homes under $600,000

$299,000

ACTIVE Status ⋅ 4 Beds ⋅ 2 Baths ⋅ 7143007 MLS ⋅ 2,304 SqFt.

heart of Underwood on Bass Lake! This property offers an impressive 146 feet of lake frontage, providing plenty of opportunity to enjoy lake living right from your own backyard. Inside, the home beautifully blends original character and charm with modern updates. Recent improvements include newer windows, a brand-new furnace with updated ductwork, and a new air-conditioning unit. The home also showcases beautiful original woodwork that adds warmth and character throughout. Outside, you’ll find a 3-stall detached garage, including one heated stall currently being used as a shop—perfect for hobbies, projects, storage, or year-round workspace. With its spacious layout, classic charm, modern updates, and exceptional Bass Lake frontage, this property offers a unique opportunity to enjoy the best of lake living in Underwood.

204 Woodland Avenue W, Underwood

Listing courtesy of Lakes Family Real Estate/Otter Tail Real Estate.

$595,000

ACTIVE Status ⋅ 3 Beds ⋅ 3 Baths ⋅ 7137433 MLS ⋅ 2,100 SqFt.

Quality craftsmanship and thoughtful design come together in this remarkable Amish built home on the west shore of Long Lake just outside of Underwood. This 3 bedroom, 3 bath home was built in 2024 with exceptional attention to detail and features main floor living, generously sized bedrooms, Amish custom built cabinetry and beautiful natural light. Highly efficient, the home boasts in-floor heating with on demand hot water, Amish built windows, and fully insulated interior walls to mitigate sound. In addition to the 2 stall attached garage, there is a 30x64 pole building with electricity for extra storage or workspace. The large lot is elevated for panoramic views of Long Lake and gradually slopes down to the natural lakeshore with plenty of space to launch a boat and install your dock and boatlift. Long Lake is apprx 204 acres and is known for it's pan-fishing but it also holds walleye, pike & perch. Buyer has the exclusive option to purchase 19612 308th Ave (neighboring home to the south) for the same price together with this home.

19642 308th Avenue, Underwood

Listing courtesy of Weichert, Realtors - Paulson Land Co.

$369,000

ACTIVE Status ⋅ 6 Beds ⋅ 4 Baths ⋅ 7134858 MLS ⋅ 3,108 SqFt.

Beautifully Maintained Hobby Farm Setting with Lots of Charm, Character and History. Very Nice. Rural Six Bedroom, Four Bath Home sitting on 18+- acres to be Surveyed. Home has steel siding, all newer windows and updated architectural Shingles. Several outbuildings have been maintained and have lots of years of good use left. The Property has been beautifully maintained and enjoyment abounds as you tour the landscaped yard. Nice large garden spaces. Home overlooks a Large wildlife pond that is very active. Must see and view the property and landscape to really appreciate. Seller will be updating private sewer system.

29373 325th Street, Underwood

Listing courtesy of Lakes Family Real Estate/Otter Tail Real Estate.

$599,000

ACTIVE Status ⋅ 4 Beds ⋅ 2 Baths ⋅ 7055032 MLS ⋅ 1,885 SqFt.

Welcome to 27890 Little Pleasant Drive in Underwood! This 4 bedroom, 2 bathroom home sits on nearly 4 acres along the shores of Little Pleasant Lake, a private lake offering a quiet and peaceful setting with 162 feet of shoreline and plenty of space to enjoy the outdoors. With nearly 1,900 finished square feet, this home has been well cared for and is move-in ready. Recent updates include a brand-new roof, soffits, fascia, and new carpet throughout the main level. The main floor offers a comfortable layout with a spacious kitchen featuring ample storage, room for a full dining table, and additional seating at the island. Stainless steel appliances are already in place, including a five-burner gas stove, and a sliding glass door leads directly to the outdoor living space. The lower level provides a warm and inviting atmosphere with a cozy gas fireplace. The bathroom features a custom walk-in shower, heated slate flooring, and a cedar-lined closet, creating a spa-like feel. Outside, you’ll find an attached 2-stall garage, along with a storage shed that includes a concrete floor and power. Just beyond that is a greenhouse overlooking the lake—ideal for gardening or simply enjoying the peaceful surroundings. One of the standout features of this property is the expansive 500 square foot deck with a custom outdoor kitchen overlooking two lakes. Complete with a built-in grill, generous counter space, and lighting for evening use, it’s perfect for entertaining or relaxing. The deck wraps around to a covered bar-style seating area and overlooks a fire pit, while the space below offers additional room to gather with the potential to convert into a 3-season porch. A private road leads to your own private boat landing— where you’ll appreciate the additional space for lakeside activities, entertaining, or simply enjoying the setting. Despite the privacy, this property is conveniently located just off County Highway 1, approximately 10 minutes from local favorites like Zorbaz and Beach Bums, and only 17 minutes from Fergus Falls. This is a rare opportunity to own acreage, privacy, and lake living all in one property.

27890 Little Pleasant Drive, Underwood

Listing courtesy of Andrew Yaggie Real Estate.

$79,000

ACTIVE Status ⋅ 1 Beds ⋅ 7036156 MLS ⋅ 240 SqFt.

7 private acres overlooking Pleasant Lake! This rural hideaway provides a quiet escape from hustle and bustle of every day life. Centrally located in the heart of Otter Tail County's 1,000+ lakes and just minutes from Pleasant, Anna, and West Lost lakes, you'll find endless opportunity for outdoor recreation. This property is protected under the covenants of Pleasant Pointe - ensuring the quiet enjoyment of this parcel as a future build site. As an added bonus, the public access for Pleasant Lake couldn't be closer - just a quick few steps across the gravel road. The 240 sqft cabin with full knotty pine interior features a lofted deck overlooking the pond, providing an ideal wildlife lookout spot. This parcel could be the space for your future dream home - with ample space for an extra garage or shop. Find your rural retreat today with opportunity for tomorrow!

29151 Pleasant Lake Road, Underwood

Listing courtesy of Weichert, Realtors - Paulson Land Co.

Start Your Search

The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity Program of the Regional Multiple Listing Service of Minnesota. Real estate listings held by brokerage firms other this firm are marked with the Broker Reciprocity logo. Information Deemed Reliable But Not Guaranteed. Property locations as displayed on any map are best approximations only and exact locations should be independently verified.

Listing data © 2026 Regional Multiple Listing Service of Minnesota. All rights reserved. By searching, you agree to the EULA.