Keillor and his wife Jenny Lind Nilsson have made an offer on a nearby house that has about 4,000 square feet more space and sits on a half-acre lot on a bluff, the Minneapolis Star Tribune reported.
The new house's listing price is no longer public, but its taxable value was listed at just under $1.6 million, the report said.
Keillor and Nilsson recently took a neighbor to court regarding the construction of a new garage they claimed would "obstruct the access of light and air to (their) property."
The matter was settled out of court through mediation earlier this year. The terms of the deal were not disclosed.
Real estate agent Mary Hardy told the Star-Tribune the dispute didn't affect Keillor's decision to move.
Hardy said Keillor wants a large, first-floor studio where he can work.