Tips to Buying a Home Out of State
It can be hard buying a home in a different state than where you live in. Not only is the area new, but the people are too. To help you buy your home out of state, follow our tips below, to get yourself started in the right direction.
Buying a Home Out of State
The first step you should do is hire a buyer’s agent. Buyer’s Agents are incredibly useful in assisting you in the home buying process in general, but especially if you are looking to purchase a home out of state. In addition to knowing your new area, they can also:
– Build a solid relationship with you and negotiate on your behalf.
– Represent your best interests, without disclosing any personal information
– Help you make the right decision on a property.
– Often enough, they know the neighborhood well and can show you around the area.
How to Find a Buyer’s Agent Out of State
Generally speaking, most buyer’s agents are referred to by friends, family, and co-workers. However, buyers in a new area usually don’t have the resources to get a trusted referral source. Here are a few things you can do to find a buyer’s agent in another state.
1. Perform a Web Search
One of the best ways to find a buyer’s agent who specializes in your chosen region is by doing a quick online search. To do this, enter a specific keyword following the formula: chosen neighborhood/area + buyer’s agent. This will help you to locate all of the agents who work in your chosen neighborhood. You can also use niche searching websites like realtor.com and activerain.com. On these sites and others like them, agents from around the country can create their own profile to draw in new business. You can easily find an agent or an exclusive buyer brokerage that only handles buyer representation.
2. Visit Open Houses
The agent who is hosting an open house may be the listing agent or they may be a buyer’s agent. Chat with them to ask what their job is. An open house provides a great opportunity to talk to a buyer’s agent and learn more about them. Ask for a business card if they appear to be knowledgeable and you get along together. From there, you can head home and gather more information about them by scanning their website. Check out how many homes they have sold and read reviews from past clients. If they still seem like a good fit, give them a call.
House Hunting Out of State
Your real estate agent can email you with daily or weekly updates about new homes for sale in the area and price reductions straight from the MLS. Most, if not all of these listings will contain plenty or photos and a virtual tour. If you see a home that you are interested in, you can email the agent to obtain more information. All communications can be completed through emails, phone calls, and faxes.
Then, if you so choose, you can visit your chosen destination and view a few of your top favorite homes in person. If you are unable to see the homes in person, that is alright as well. You can get a feel for the home on a virtual tour and sign all the paperwork electronically.
Simultaneous Closing in Different States
If you are buying a home and selling your current home in different states, it can be almost impossible to orchestrate a simultaneous closing. Many banks will refrain from funding a loan for an out of state buyer until they receive the HUD on the sale of the buyer’s current home. Typically this is how the situation plays out:
1. The sale on the buyer’s current home closes.
2. The funds are wired to the closer who is handling the purchase of the buyer’s new home. The HUD is then faxed to the bank.
3. The lender funds the new purchase.
4. The new home closes. You can begin making moving arrangement, obtaining homeowner’s insurance, getting a home warranty plan, and more.