22 Tips for buying a house out of state

Table of Contents

Introduction

Buying a house out of state is a huge move, and you want to ensure that you know what you’re doing. I recently moved to a New City and am pretty familiar with the process. Here are some tips on how to make it go smoothly:

1. Figure out what kind of home you want to buy.

Before you start searching for homes, you must know what kind of home you want. You will be more likely to find a home that meets your needs if you have a clear idea of what those needs are. For example:

Do you want a house or an apartment?
How many bedrooms do you need?
How many bathrooms does the house need to have?
What size space will be required for each family member visiting from out of town?
What size yard is needed for kids’ playtime and gardening activities like growing vegetables and flowers for landscaping purposes?
And how much can you afford at this point in your life?

2. Understand the market.

Before you begin your home search, you need to understand the local market. That means understanding all parties involved in the home-buying process.

This could be relocation specialists, real estate agents, mortgage lenders, local home inspectors, and more.

You may have a home in mind, but if it’s out of your price range, you’ll need to look at other options.

If I were buying a house out-of-state and didn’t know much about the local market, I would start by researching some of the Central neighborhoods in the area.

For example:

What are some excellent first-time home buyer neighborhoods?
Which areas have good schools and low crime rates?
Which areas have more amenities or higher property values than others nearby?

Once you’ve narrowed down what kind of place works for your budget and lifestyle needs, move on to the next step.

3. Factor in all the costs.

Many unknowns exist when buying a home out of state, including moving costs. The costs can be overwhelming, but it’s important to consider them all.

Suppose you’re moving away from friends and family. In that case, you might want to consider how much time off work will be required during the transition period and any potential loss in wages due to being absent during business hours.

Moving services and travel expenses also factor into the equation. These extras can add up quickly—especially if multiple moves are involved. So keep them in mind when planning budgets for each move-related expense category mentioned above!

4. Evaluate state tax implications.

Before you buy, it’s important to research the tax implications of purchasing a home in another state. For example, if you pay income taxes in one state and move to another, special rules may apply when you sell your old home.

What are the tax laws for houses in this state versus where I live, and what will that mean for me and my property taxes?
What other requirements or restrictions are there on real estate transactions in this area? For example, if it’s an older home with lead paint, will I be able to sell my existing house as quickly as I could if it were new construction or remodeled by an expert who knows how best to remove lead paint safely from walls and fixtures (without damaging them).

In addition to federal income tax returns, states have their own income tax filing procedures.

It’s important to understand how these affect your situation since they could mean additional costs or savings for homeowners moving across state lines.

In some cases, homeowners may be able to deduct their mortgage interest and property taxes on their federal tax return; however, if they don’t itemize deductions, these items won’t be counted for tax purposes.

Further complicating this matter is that each state has its own rules about what can be deducted from income when filing an annual return; therefore, even if something is deductible under IRS rules, it might not be allowed by California or Pennsylvania (for example).

5. Hire a local moving company.

One of the most important things to do when planning a long-distance move is to hire a local company. These professionals know their way around the area and can help you prepare for any difficulties that may arise during your move.

When shopping for a moving company, look for one with experience working in your new state. This will give them more expertise in navigating through local laws and regulations.

You also want to ensure that they have an excellent reputation ⭐️ among customers, so ask for references from past clients before making your decision.

When talking with potential movers, ask about their pricing structure and what the schedule looks like—this information will help ensure you’ll get everything packed up on time!

Moving companies need insurance coverage to operate legally within most states; make sure yours has enough coverage by checking its website before hiring them (and remember: The higher the liability coverage limits on each item being moved, the better).

Finally, check out the equipment and vehicles used by potential movers since these factors can affect how quickly jobs are completed (you don’t want yours ending up in an accident!).

6. Hire a local lender

The first step to buying a house out of state is finding a local lender.

You’ll want to work with someone who knows the area and can help you navigate any challenges. An excellent way to find one is by asking friends or family members for recommendations.

When considering potential lenders, ensure they have an established presence in your area and experience working with buyers who aren’t from there—they’ll need both to get things done smoothly.

You’ll also want to check if they specialize in mortgages backed by Fannie Mae or Freddie Mac (the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation).

These two government-backed agencies provide secondary markets for mortgages, making them easier for both borrowers and lenders alike since there is less risk involved when issuing loans through these entities compared with banks issuing primary market loans out on their own without any federal backing whatsoever.

7. Calculate the cost of relocation.

Get quotes from movers and insurance agents who can provide specific information about what their services will cost.

According to Forbes.com/home-improvement/moving-services/movers-and-packers-cost" target="_blank" rel="noopener noreferrer">Forbes,

The national average cost of moving is about $1,400 with a range from $800 to $2,500. Note, however, that this price range is for a 2-person moving team completing a local move of less than 100 miles. For long-distance moves, the average cost of movers jumps to between $2,200 and $5,700.

8. Research the local neighborhood before you buy.

You have to research the local neighborhood before you buy. After all, you’re going to live there, and if you aren’t happy with the area where your house is located, it won’t be fun for anybody.

Several things will help determine whether or not a neighborhood is good for you:

Local School System
Crime Rate (both reported crime and actual crime)
Property Taxes (you don’t want high property taxes if you’re trying to sell)
Neighborhood (the types of people who live there – families? singles? retirees?). Local Economy (number of jobs available)

9. Know the laws of the state you’re moving to.

When you’re moving to a new state, it’s important to know the laws of the state you are moving to. For example, in some states, there are no limits on how much sellers can charge for closing costs. In others, sellers must provide buyers with a list of all fees associated with closing on the property. If you don’t know what those fees are and why they are charged, it can be confusing and stressful when you go to close on your home.

It’s also important to know if there is any sort of inspection or approval process for homes that need repairs before closing. In some states, sellers are required by law to disclose any problems with their home; in others, this information is up to them.

10. Be ready for potential challenges.

When buying a house out of state, there are some factors that you need to be aware of. You may have to sell your current home or find an apartment or hotel to stay in while you look for a new one.

Whether or not these challenges are too much for you will depend on your personal preferences and financial situation—but if they seem too much, consider whether it might be better for you to buy closer by instead.

11. Have a plan for making last-minute trips to your new house.

Home buying is stressful enough without having to worry about getting from point A to point B on the day of closing. If you’re buying a home in another state and need to make last-minute trips there before closing, make sure you have an escape plan.

Have a plan for making last-minute trips to your new house.
Be prepared to drive, fly or take a train or bus.
Make sure you can communicate with your realtor and family while driving to the house because they can be very helpful on these impromptu trips.
Also, ensure you have the contacts’ names at home if something goes wrong!

If you’re going to buy a home in another state, it’s important that you consider how much time and money it will cost you to visit your new home. If you’re planning on staying in your current place while looking for houses in another state, have a plan for making last-minute trips so that you don’t have too many unexpected expenses or issues with housing arrangements while looking at houses. This can help keep stress levels down and make it easier for everyone involved!

12. Make a list of questions and hire a local real estate agent.

If you’re serious about buying a house, hiring a local realtor who specializes in your area and has knowledge of the housing market is key. That said, not all realtors are created equal—plenty out there won’t give you great advice or offer valuable assistance during your search.

So how can you tell if your new agent is worth their Salt (or should we say commission)? It starts with identifying what questions to ask before talking with any agents.

13. Talk to multiple lenders and get pre-approved.

When buying a home out of state, you must do your due diligence and get pre-approved by a lender before putting in an offer on a property.

In fact, it’s best to get pre-approved by at least two lenders—one in the state where you are moving (the “target” state), and one back home (the “origination” state).

The first lender will provide the necessary paperwork for completing your purchase; his or her information will be used as part of the closing process.

The second lender should be able to recommend trusted experts who specialize in inspecting homes or other services related to buying real estate.

By getting two different quotes, you’ll be able to compare and see which lender is giving you the better rate. I recommend getting three or four quotes in total before locking in a rate.

14. Does your mortgage lender have to be in the same state?

You will need to find a mortgage lender licensed in the state you are buying the home in. Some lenders will work with out-of-state customers, but it will be more difficult for them to do so; they may require you to have a local realtor.

For example, on my first home purchase, I got pre-approved by the online mortgage lender Better.com. The seller’s agent didn’t want to work with Better because it wasn’t a local lender, but I used the quote they gave me to ask my local lender to match it.

15. Be prepared to place offers on multiple homes

You may need to place offers on multiple properties before finding the one that works for you. Don’t be afraid of making multiple offers, and don’t worry about making the first offer too low or too high.

Try not to get caught up in finding “the perfect home” because there rarely ever is—there’s always something that could be better about any property!

If something feels off about a deal, walk away gracefully rather than sticking around for months hoping for that dream property at an affordable price.

16. Have an offer accepted on a new home and go under contract

Once you have a signed offer on your new home, it’s time to sell your current house. You can get started by hiring a real estate agent and listing your home at the price you want to sell it for. You also need to decide what kinds of offers you’re willing to accept, such as contingent or cash offers. Once these steps are done, begin packing up and getting ready for your move.

Once again, we recommend staying off the phone with potential buyers until after the closing date has passed on both properties; this is when communication becomes more formalized and less likely to result in misunderstandings or delays in closing on one property before purchasing another.

17. Drive the area around your new home during the inspection period.

Drive the area during the home inspection unless you’re buying a home sight unseen.
Stay in the neighborhood for at least a couple of weeks after your purchase to get a feel for what it’s like to live there.
Ask local friends, neighbors, and coworkers where they go for groceries and restaurants or if they have any recommendations.

18. Get professional help with the paperwork.

When buying a house out of state, it’s crucial to have a lawyer or someone familiar with the process. You can get help from a real estate agent, but remember that they are not experts in the legal side of things.

19. Get insurance quotes before closing your deal with a lender.

Before you close on a house, get insurance quotes from multiple companies. Ensure that the quotes you get include all the coverage types important to you.

Check that your policy includes flood insurance and windstorm/hail insurance because these are two types of coverage that most homeowners don’t consider until it’s too late.

If your house is in a flood zone or near an area known for severe weather, getting these types of coverage could be crucial to keeping your investment safe (and dry).

20. Keep an eye on the weather and time of year when you make the move.

Another thing to be sure of is that your driver has a good set of wheels. If you’re moving during winter, ensure they have a well-maintained vehicle with plenty of antifreeze and snow tires.

If you find yourself stranded in some remote location due to weather conditions, waiting out the storm while trying to keep everyone together can be stressful enough without having unreliable transportation on top of everything else.

21. Keep up with your current home’s maintenance.

As you move, ensure your current home is in good working order. That means ensuring all the home maintenance is up to date, including an HVAC system inspection and electrical inspection. If you don’t want to do any of these inspections yourself, it’s worth researching local contractors who will do them for a reasonable fee.

Of course, it’s also important not to neglect other aspects of your home’s upkeep. Ensure that your plumbing and sprinkler system are both clean and functional; if they aren’t working properly before moving out, it could be a major headache (or worse) trying to get things fixed after the fact!

22. Take care of your physical and mental health during a stressful time.

Take some time to relax. Staying on a tight schedule can help you stay on track, but it’s important not to burn out. Take a break when you need it—whether that means going for a walk in your neighborhood or skipping the gym and spending an hour watching Netflix instead.
Get plenty of sleep and eat well. Resting up will help keep your energy levels up. Eating regular meals will keep those pesky hunger pangs at bay (and if it helps, think about how much money you’ll save by buying groceries locally).
Exercise regularly! If exercise is challenging for you because of injuries, try something more low-impact like yoga or pilates instead—make sure it doesn’t hurt too much during this time of stress so that it doesn’t cause more problems than it solves!