Career changes, family obligations, educational opportunities, or a craving for adventure may lead to a need to secure housing in another state. This guide explains how to buy a house out of state, the most common challenges out-of-state buyers face, and specific techniques they can use to overcome them.
Buying a home out of state may present some unique challenges, but it is possible with careful planning.
Planning and Preparation
Buying a house out of state is doable with a little planning and preparation. Here are a few steps to consider when purchasing a home in a different state.
Determine Your Needs and Budget
Define your needs and budget before deciding on a city or neighborhood. This clarity can help you set realistic expectations and narrow your home search to the most relevant properties. Also, consider your buying budget, including the price of the home and monthly payments.
Think about the home’s size and features, as well as the minimum number of bedrooms and bathrooms. You might also consider local amenities, such as proximity to shopping or schools.
Consider whether a move-in ready home is important to you, too. Some people may prefer to buy a house out of state that is already furnished with everything they need. Furnished homes are especially common when purchasing a vacation home in a different state.
Review your home preferences with your agent so they can send you properties that meet these requirements.
Secure Financing
You’ll want to secure financing before shopping for or looking at homes. A mortgage pre-approval informs you of how much you’re likely to be qualified for so you can begin shopping for homes within your budget. Additionally, sellers take pre-approved buyers more seriously, helping to strengthen your purchase offer.
While working with local lenders is optional for buyers from out of state, finding a knowledgeable local real estate agent is crucial. Consider applying for pre-approval from a few mortgage lenders to compare interest rates and maximize your buying power.
Research the Area
Research the areas you’re considering buying to ensure it’s right for you and your family. If possible, spend a weekend or more in the city. Otherwise, research is needed to provide information about local schools, amenities, and the cost of living. Check travel routes from different neighborhoods to the amenities you’re most likely to frequent.
Check out the local shops and recreational facilities in the new city. Social media groups and local newspapers can also help you learn more about a specific city. Google Maps can provide insights into the nearby amenities. You should also review the local job market if you plan to secure new employment in your new community.
Finding a Real Estate Agent
Local real estate agents can be a valuable source of information when buying a house out of state. Use these tips to find the right agent in your intended city.
The Importance of a Local Real Estate Agent
Working with a local real estate agent provides buyers with additional location-specific information. The agent can provide valuable insights into the local market, which can help shape your offer. Real estate professionals can also help narrow down your buying market and help you choose the best neighborhood for your needs.
An agent can also provide local home prices and offer insight into what to expect in property taxes and closing costs on specific properties.
Finding a Qualified Agent
Choosing the right real estate professionals also means hiring someone qualified. The right real estate agent can make the home-buying process easier and more convenient. Find a reputable agent by asking for referrals or checking online reviews.
You can also interview agents you’re considering working with to learn more about their local knowledge. It’s also important to choose an agent with experience working with buyers from out of state. These are agents who can offer a virtual tour when showing properties.
Searching for Properties
After choosing the right agent and location, it’s time to begin house hunting. These tips may help whether shopping for a primary residence or vacation home.
Utilizing Online Resources
Digital resources make searching for properties easier than ever. Websites such as Zillow and REALTOR show houses that are currently for sale. These listings conveniently show the price, size, and property amenities. Some also show pricing history.
However, while online real estate listings can be a great place to start, they’re not always up-to-date. It may take longer for online listing websites to show when a home is pending or sold than the Multiple Listing Service (MLS) licensed agents use.
Additionally, a local agent is still needed to view the property in person. Working with the right agent shows sellers you’re a serious buyer, especially when buying a house in another state.
Virtual Tours and Video Calls
Buyers visit an average of 10 properties over 10 weeks before making an offer. This many showings may be unrealistic when buying a house from out of state. [1]
Virtual tours and video calls can be helpful when shopping from out of state. Your agent can attend the showings and walk you through homes virtually. While you may still want to visit a home in person before placing an offer, this can be a great way to narrow down your list to include the best ones.
Making an Offer and Closing the Deal
After finding your dream home, it’s time to make an offer and, hopefully, close the deal. Your agent plays an important role in this process.
Negotiating the Offer
Decide how much you’re willing to pay for the home based on your budget and the local housing market trends. A competitive offer helps yours stand out, especially in real estate markets with many buyers. Work with your agent to review the local real estate market so you can submit an offer that’s likely to be accepted.
Negotiations may be possible in some housing markets. You and your agent might negotiate the home’s purchase price or other aspects of the deal, such as buyer concessions. Concessions are incentives that help offset buyer costs, such as down payment assistance or appliance warranty coverage.
It’s also important to discuss contingencies. For example, if your offer depends on the sale of your property, you want to include this in the offer. If you’re only willing to pay the offer price if the home appraises for the same or higher, your contract should state this. Make sure you have a solid understanding of the offer before submitting it to the seller’s agent.
Conducting Inspections and Closing the Transaction Remotely
A home inspection should be part of the home-buying process. During an inspection, a licensed professional analyzes the property, assessing its safety and quality in each aspect. The inspection provides a detailed report on the home. It might include a review of the structural components, roof, electrical, and plumbing systems.
With the inspection report, a buyer may request that the seller make repairs or renegotiate the home’s price. Out-of-state buyers can use electronic signatures and virtual notarization services to order, complete the inspection, and close the deal without traveling to the property.
Working with a qualified title company can also make the closing process of buying an out-of-state home easier. The title company will review the property for any title issues, complete a title search, and ensure the most recent property taxes are paid and property lines are listed accurately in the closing documents.
After you complete all the required documents and secure proof of homeowners insurance, your mortgage lender should clear you to close. This step is when you’ll pay closing costs and have the property officially transferred to you. With your driver’s license and the right team, you can complete this process completely virtually.
Challenges of Buying Out of State
Long-distance house hunting may be necessary when relocating, but it has some challenges, including the following.
Lack of Familiarity with the Area
Buyers may not be familiar with the local area where they plan to buy a house. Some buyers may opt for temporary housing, such as a short-term rental, before moving.
A good agent can help by providing buyers with important information, such as local real estate laws. You can tour homes virtually with the right buyer’s agent and learn more about the neighborhood.
Coordinating Logistics Remotely
Moving out of state may also require coordinating certain logistics, such as managing inspections or repairs. An experienced agent is even more valuable in this situation, as you’ll rely on them to oversee appraisals and inspections.
Potential for Unexpected Issues
Home-buying can lead to surprises, which presents an even more significant challenge when out of state. Of course, there are other factors to consider, such as how you will move your items to the new property. Depending on how far the new home is from where you currently live, you may need multiple movers.
Buying a house in another state has unique challenges, but it is possible when using the right agent.
How A-List Properties Can Help You Relocate
Buying a house outside state lines while simultaneously listing your existing home can be overwhelming. Selling your home to a cash buyer speeds up the selling process and eliminates many of the usual contingencies.
With a cash seller, you can skip repairs and showings, allowing you to focus on your new house. You’re also in control of the closing date. Whether you’re moving for a new job or to be closer to family, selling your home to a cash seller makes the process easier.
To receive a fast cash offer, contact A-List Properties today at (972) 526-7042 or fill out our online form.
References: [1] Realtor.com
Zach Shelley
Zach Shelley is a seasoned real estate investor with a diverse network spanning across the nation. As the founder of his own real estate venture, Zach is committed to offering innovative solutions to homeowners facing various real estate challenges.. Through his dedication and strategic approach, Zach continues to make a significant impact in the real estate industry, providing homeowners with alternative pathways to navigate their property transactions.
