Buying a home is a big deal. Buying a home in one state while you’re living in a different state can make it an even bigger deal. Arm yourself with our tips for buying a home in another state and enjoy a surprisingly easy transaction despite the miles between you and your new home.
No matter whether you’re a Hoosier seeking a home in the Sunshine State or you’re planning a cross-country move from New York to Los Angeles, there are many tips for buying a home in another state to keep in mind. Three tips for purchasing a home in another state to consider include:
- Do the right research
- Leverage technology
- Work with the best Realtor
How Do I Buy A House if I Live in Another State?
How do you buy a house if you live in another state? The process is similar to buying a home locally. You’ll need to take a hard look at your finances, determine what you want in a home, get mortgage pre-approval, secure financing, make an offer, close and more. The right Realtor will guide you through each step.
Buying a home out of state involves doing your homework, taking advantage of technology and having the right team on your side. From working with a knowledgeable Realtor in your new hometown to going on Skype house tours to learning about the cost of living differences, it takes legwork to buy a home in another state.
Can You Be a First Time Buyer in Another State?
While it is possible to buy your first home out of state, it might not be a good idea in your situation. Many first time buyers looking out of state can have trouble securing financing. Your odds for pre-approval might go down and your required down payment might go up if you are a first-time homebuyer looking out of state.
Don’t be discouraged, though. The right Realtor might be able to match you with the right home, the right financing, and everything else you need to be a first-time buyer in another state.
How Do I Get a Mortgage Out of State?
Getting a mortgage out of state is very similar to getting a mortgage in your home state. You’ll need to do some homework to determine how much you can expect to be approved for by your lender. You can do this by playing with online mortgage calculators.
Some real estate experts suggest working with a national bank, like Bank of America or Wells Fargo, when you’re trying to get a mortgage out of state. This way you can handle all the details in your local branch before you make the move. This is especially important as the local lenders in your community might not handle loans in your new state.
What State is the Easiest to Buy a House?
How easy or hard it is to buy a house in a state can depend on how much inventory is available in that state. The housing industry is booming in Florida and it ranks among the easiest places to buy a home in the country, according to information from real estate news source HousingWire.
Need more information about buying a house out of state? Let’s breakdown a few tips for buying a home in another state and see how you can take the headache out of an interstate move.
10 Tips for Buying a House in Another State
Buyers relocate and buy property in other states every day. It’s a doable feat, it just requires a little extra effort as all of the details are handled from afar. Keep these 10 tips for buying a house in another state in mind as you go through the process of a long-distance home search and move.
Do The Right Research
There is so much to learn when you’re trying to find the right home from afar. The best way to start the process of buying a home out of state is to get down to business and do your homework. Local real estate markets vary from state to state and even city to city, so it’s important to know as much as you can before you start planning your move.
Here are some things to study when you’re in the homework stage of house hunting in another state.
Cost of Living
No matter whether you’re just crossing a state line 10 miles away or you’re going the long haul and moving 1,000 miles away, the cost of living between states can vary significantly. Nerd Wallet has put together a handy cost of living calculator you can use to see how your salary or other income might compare in your old state versus your new state.
Florida has a favorable cost of living comparison when looking at many other states. In fact, the overall cost of living in Florida hovers right around the national average. This might be particularly attractive if you’re coming from a high cost of living states like New York, California, Oregon, Hawaii, Massachusetts, Maryland, Connecticut, New Jersey, or even Rhode Island.
Ocala, Florida, is a particularly affordable place to live in Florida. The median home cost here is just $148,200 -- which is well below the national average of $231, 200. Residents of Ocala also pay less than the national average for health care, groceries, transportation, and miscellaneous expenses. Ocala might be an attractive place to consider when you’re planning an out of state move to the Sunshine State.
Quality of Life
Another significant thing to research when planning an out of state move is quality of life. While a low cost of living can contribute to your quality of life, there’s so much more to consider. For example, it doesn’t make much sense to buy a retirement home in South Dakota when Gulf Coast beaches with white sand make your heart sing.
Look at other indicators of quality of life in your potential new home. How are the schools? What is there to do? What makes the economy thrive? What is the natural and living environment like?
Cities and Neighborhoods
Maybe you know you’d like to move to Florida. But do you know where in Florida you’d like to call home? Look at the cities and neighborhoods that suit your lifestyle needs and housing demands.
For example, if you have little ones, you might consider looking at schools and places to play in your new locale. If you love the outdoors, you might want to be close to springs and forests. If you’re a sun worshipper, you might want to be on the coast.
Look at Local News
Want to really get a feel for your potential new town? Look at local news and see what’s making headlines. You might scan through the local paper’s police blotter and see high-crime areas. You might learn about programs at the public library and school rankings. News about business growth might suggest a strong economy. You can learn a lot about a community by seeing what is newsworthy there.
Do your homework and you’ll find a great place to call home.
Get the Best Realtor
Your real estate agent serves as your eyes and ears when you’re buying a home in another state. You’ll want someone with experience and insider knowledge who can guide you through the process.
It might be difficult to find the right buyer’s agent in your new state, but it is an essential part of the process. You can find the right Realtor by asking the right questions. You might want to ask your Realtor:
- How long have you been in the business?
- What kind of properties do you like to handle?
- Will you let me review all documents in advance?
- What sets you apart from other agents?
- Do you have references or testimonials from previous buyers?
- What is your cancelation policy?
You’ll find than an expert Realtor will answer these questions with ease and will make you feel confident in your decision to work together.
Think About Working with a Relocation Specialist
A relocation specialist is an expert who can assist with every step of your move to a new state. These services can particularly come in handy when you’re moving for work and don’t have time to handle the details yourself.
A relocation specialist might be able to do things like:
- Refer you to a local Realtor
- Negotiate with the moving company
- Find child care providers and schools
- Arrange pet shipping or travel as necessary
- Ship cars
- Provide tours and local information
- Help you find new service and medial providers in your new state
Use Technology to Your Advantage
When you’re house hunting from afar, you likely can’t just pop in to open houses like you could during a local search. This is where technology can come in handy.
You can use apps like FaceTime and Skype to go on virtual tours with your realtor. You can use social media to get the scoop on listings fresh on the MLS. You can use Google Maps to virtually cruise neighborhoods and get a feel for your potential new neighborhood.
With so much technology right at your fingertips, your smartphone might be your second-most important tool when you’re buying a home in another state. Right after your realtor, of course.
Be Scam Savvy
Scams are common on the real estate market. It is important to be savvy and avoid getting swindled.
One popular scam involves showing photos of a beautiful home and advertising a surprisingly low price. You’ll put down money to reserve the home and the scammer vanishes. Sometimes the scammer might even stage a bidding war to drive up your deposit. But the bad news: The home was never even available or in the scammer’s possession. You’re out the cash for a property that was never even more sale, to begin with. You might find this scam on Craigslist or other online marketplaces.
One way to avoid such scams is to work with a Realtor you trust. The right buyer’s agent will network with the listing agent to make sure everything is legit before even presenting the home as an option.
Look at Laws in Your New State and Municipality
There’s a lot of research that goes into buying a home in another state. Not only do you need to look at cost of living, quality of life, and other factors, but you might also consider looking at the laws in your new state.
For example, some states --including Florida -- require a real estate attorney to be involved in each closing. Other states have looser guidelines. Other things you might want to keep in mind before making the move include:
- Zoning laws
- Property lines
- Building codes
- Fencing ordinances
In addition to looking at the local laws, you’ll also want to look at deed restrictions and other rules set by a homeowners association in your new community. If you’ve always dreamed of having a pink house, your wish might not come true as the HOA could require your home to be an approved color.
Give Yourself Plenty of Time
The home buying process can take several months, especially if you’re crossing state lines. In fact, some experts recommend starting the process up to 6 months before you intend to be in your new state. It can take that long to do your research, find the right Realtor, locate your dream home, and more.
Work with A Respected Title Company
One of the most important steps in buying your home is making sure you have a clear title. This document shows that the seller is free and clear to sell the home to you as the buyer. You’ll find that the title is the heart of the home-buying transaction, so you’ll want to be sure you’re working with a reputable title agency.
A respected title company comes with more than a great reputation. The title company should be ready to do a title search, survey the home and property, and prepare all the legal documents needed to clearly state the seller is entitled and has the right to sell the home.
Additionally, the right title company might also title insurance to both the owner and the lender. An owner’s title insurance policy is designed to protect the interests of the homeowner should another party claim they own the home. A lender’s title insurance policy would protect the bank that holds the mortgage should another party claim they have rights to the property.
In most states, lender’s title insurance is required. The owner’s title insurance might be optional. A reputable and respectable title company will help you make sense of requirements in your new state and location.
Consider using referrals and word of mouth to find the best title company. The right company will prepare the right documents and offer the right insurance needed to protect your investment.
Create a Moving Checklist
You might have seen our How to Get Your Home Ready to Sell Checklist (INTERNAL LINK). While you’re at it, you might create a moving checklist for your interstate move.
Items to consider crossing off your list might include:
- Researching movers or lower-cost self move alternatives
- Scheduling or transferring utilities
- Setting up mail forwarding with the USPS
- Learning about what it takes to establish domicile in the new state
- Getting a new driver’s license and registering vehicles in the new state
- Finding medical and service providers in the new state
While a relocation specialist can likely help you with the tasks on your moving checklist, you should still count on doing some of the legwork yourself. A list will help you stay organized as you plan your move.
Plan to Travel to the Inspection
There’s only so much you can do virtually or remotely. One can’t miss even in the homebuying process is the inspection. In fact, the inspection might be even more important than closing.
If you are forced between choosing a local closing on your out of state home or attending the inspection of your out of state home, it might be wise to go with the inspection. Being present at the home inspection will allow you to familiarize yourself with the property and will allow you to get a feel for any issues at hand. You’ll likely learn things about the home you wouldn’t otherwise.
Buy a Florida Home with Bill Blankenship
As you can see, there’s a lot that goes into purchasing a home from afar. Following these tips for buying a home in another state can help make the transaction as smooth as possible.
Another thing you can do to ensure a great home buying experience: Make sure Bill Blankenship is on your side. Bill knows the market inside and out and is ready to be your strategic partner. He’s helped families like yours buy homes in Ocala, Florida, from all over the country and is prepared to be your boots on the ground when you’re shopping from another state.
Let Bill Blankenship be your real estate agent and relocation expert. Reach out today and see what sets Bill apart from the rest.
