Important takeouts:
With the right planning and the help of experts, it is possible to buy a home out of state. You will be inspected and approved in advance for your mortgage. Rely on real estate agents for local expertise, virtual tours and inspections. Remote closing makes the process smooth and stress-free.
Buying a home is a big milestone for many, but that excitement can be a concern when buying a home in another state. The potential unknowns are difficult, but fortunately, the process of buying a home outside of state is very similar to the average home buying process.
Whether in Indianapolis, Spokane or New York, we’ll guide you through every stage of buying a home out of state, from browsing Redfin for your dream neighbourhood home to closing the deal and settling down.
1. Understand your goals and timelines
Take some time to understand why you are moving out of state and when you want to calm down. Here are some common reasons why people move out of state:
Employment transfers better living expenses to get closer to family Changes in better education opportunities and cultural tax opportunities
Knowing “why” can help guide the rest of your decisions, including your ideal location, budget, timeline, and more.
Like new jobs with solid start dates, if your movements are time sensitive, you may need to prioritize quick, remote-friendly processes like virtual tours and e-closing. If you have more flexibility, it will take time to explore different areas and find the best fit.
2. Investigate the target location
Regardless of your timeline, buying a home outside of state requires additional research into the areas you plan to move to. You’ll want to understand the differences in lifestyle compared to your local housing market, cost of living, employment opportunities, taxes, and where you live now. State-specific taxes such as income, sales and property taxes can have a significant impact on your budget, so it is important to be aware of the impact.
Redfin has many tools to help you with your research.
Housing Market Trends and Insights: View current data on regional pricing, inventory and sales activities. Livelihood Calculator: Compare costs such as utilities, taxes, and everyday costs to see how your budget grows across different regions. Affordable Price Calculator: Determines home prices that fit your budget based on income and debt. Rental vs. Purchase Calculator: Compare the economic impact of buying a home with renting. Homelist: Visit neighborhood information, climate risks, schools and more.
3. You will be approved in advance by your mortgage lender
Being approved in advance for a mortgage before a home hunt is a great way to understand how much you can afford and show you that you are a serious buyer. When buying a home out of state, it is important to note that your lender must be licensed in the state in which you are purchasing. In some states, down payments and credit requirements may also differ from yours.
4. Find a real estate agent in a new state
The best way to streamline the process of buying a home in another state is to connect with a trusted real estate agent. Most processes are remote, so agents have eyes and ears on the ground. In this case, choosing the right agent becomes even more important. Make sure you have experience working with out-of-state buyers for your specific needs.
5. Start searching for new homes
House hunting can be a fun, stress-free process. One of the best ways to get started is to create a list of essential respect and maintenance to compare your needs and desires. Create a set of both your neighborhood and your home listings to narrow down your search area. Depending on your schedule and budget, there are several ways to find an out-of-state home.
Virtual Tour: Virtual 3D Walkthrough is a great way to see multiple homes from afar. This tool will help you give them confidence to narrow down the options you want to check out directly or make an offer right away. Live Walkthrough: Ask your agent to guide you around the house via live video. They can answer your questions about noise, odor, what doesn’t look like traffic, and you can see details such as closet space and water pressure. In-person visits: If time and budget allow, we highly recommend in-person visits when buying a home in another state or anywhere about that. Plan a trip to see some homes with your agents and spend time exploring the neighborhood in person.
Some buyers buy invisible vision with trusted agents and strong contingencies, but rentals offer the flexibility and time to explore the area before committing to the long term first.
>>Read more: Should I rent or buy a house? Pros and Cons
6. Make an offer and negotiate
Once you find the right home, it’s time to make an offer. Your agent will help you create competitive offers that include significant contingencies such as inspection and assessment contingencies to include when buying out of state. If you also sell your current home, the unforeseen circumstances of home sales can help you buy more time to do so. Make sure your agent is aware of your specific needs. That way, make sure you cover all the bases of your offer.
>>Read more: 7 common real estate contingencies that buyers should know
7. Obtain the results of the test and evaluation
A thorough home inspection is important when purchasing a home outside of state, especially if you are not meeting in person. If you are unable to attend the test in person, you will have your agent do it on your behalf. Request a video walk of your findings and a detailed report with photos and notes to find the issue before closing.
8. Close the house remotely
Unless you are visiting or visiting temporary housing, you will remotely close your out-of-state home. Fortunately, most closing documents can be signed electronically. It’s easy to close from afar as long as your agent and your lender have experience helping out-of-state buyers. Depending on your brokerage, you may be able to mail a new key or place it in your lockbox to search on arrival.
9. Plan and resolve your movements
Now that you have closed your new home outside of the state, it’s time to make your move. Moving in general can be stressful and moving to a new state only adds more complexity. Hire a moving company and organize everything using a moving checklist. Keep essentials such as medicines and important documents to avoid last-minute searches.
Once resolved, make sure to tackle these important postmaube tasks.
Renew driver’s license voter registrations Set up utility and internet by changing your email forwarding task, finance, and subscription addresses
And of course, it takes time to explore your new neighborhood. Meet your neighbors, find your nearest grocery store and find some unique things to do to get to know your city.
>>Read more: Make your next move easier for 15 moving hacks
FAQ on how to buy a home out of state
Is it difficult to buy a house out of state?
Buying a home out of state is very similar to the average home buying process. The big difference lies in the amount of research you need to do. Pay attention to tax differences, cost of living and local methods, especially when purchasing a home in another state.
What is the timeline for buying a house out of state?
The timeline for buying a home is different for everyone, but when you buy out of state, the general steps remain the same. If you want to spend more time searching for the right neighborhood, extend your timeline by living in a temporary home and give you the opportunity to find the perfect place.
Can I buy a house without meeting in person?
Yes, many buyers have never bought or stepped into an invisible home. Virtual tours, 3D walkthroughs, and trusted agents can make the process easier. Make sure to include the contingency of inspection and evaluation in your offer to continue protecting yourself.
Do I need to rent it before I buy in another state?
Temporary housing is a great way to get to know your area before you make your commitment to buying a home. If you need more time or information to rent a house or apartment, look into a company’s home through your employer, or consider buying a home, live in a long-term vacation rental.
Do my mortgage lenders need to be in the same state?
Yes, your mortgage lender must obtain a license to operate in the state you are purchasing. When looking for lenders, you can find people who have experience working with out-of-state buyers and help with the process easily.
Can I buy a house in another state without having a job there?
Yes, if you don’t have a job there yet, you can buy a house in another state. Many people who own secondary properties own them in areas outside their homelands. Make sure to consider your budget and whether to buy or sell your home at the same time.
What happens if I’m relocating to work?
Talk to your employer about relocation assistance. If you are being transferred from your company or accepting a new job in another state, you may be entitled to a refund transfer.
