Perhaps you dream of moving to a state of sunshine and surfing like California. Or maybe you have grand ambitions to make it in the world of finance and want to join the millions in Manhattan.
Whatever your motivation, moving to a new state can be an exciting, albeit nerve-wracking adventure. Finding a house is usually the top of most people's worries.
We've put together a guide to help remove the stress from the process. Read on to learn how to buy a house in another state before moving.
Get to Know the Local Market
When buying a house in a different state, your primary challenge is unfamiliarity with the area. What may seem like a fantastic deal online could be a different story when you see the location in person.
Delving into the local real estate market is crucial to overcome this.
This research will help you identify real estate trends, such as rising prices in specific neighborhoods. It will also guide your decision-making when selecting areas for your house search and setting a budget.
Moreover, local market research will equip you with a wealth of other valuable information, like good schools and job prospects.
Set a Budget
Setting a budget before you start your search is crucial. It will help you narrow your choices and prevent you from falling into the trap of setting your heart on a property that you can't afford.
If you are getting a mortgage, you need to begin your budget by looking at what you can afford to pay each month.
Remember that interest rates can be unpredictable, so ask yourself if you can still afford your mortgage if rates go up. You will probably make a down payment, another area you must calculate.
If you have lengthy timescales for your move, consider whether you can save some money for a higher down payment. Remember that a house's cost goes beyond the price tag of the home you are buying.
You must set aside funds for taxes, legal fees, and insurance. Set that money aside from the start so you don't find yourself short of funds at the eleventh hour.
The critical thing to remember with a house budget is that you shouldn't overstretch yourself. None of us can predict the future, so you should have a financial cushion so that you don't lose your home if circumstances change.
Get Approval for a Mortgage
Before you begin your house search, initiating the mortgage process is wise. A pre-approved mortgage is advantageous, especially when looking in a different state.
It provides a clear understanding of your upper budget, making your house search more focused. Additionally, it puts you in a favorable position with sellers when making an offer.
They'll see that you're a serious and committed buyer.
A pre-approved mortgage means the lender will conduct all the necessary background checks, so ensure you have everything in order. Reputable lenders will look for a steady employment history, income, and credit rating.
They'll also want to see that you're not overstretching yourself financially with the house purchase.
Choose a Local Real Estate Agent
Having the helping hand of a local expert can make a big difference when looking for a property in a different state.
They can make the link between what you need and what's available, even when you can't be there in person. The other advantage to hiring a real estate agent is that they will have in-depth knowledge of the local property market.
They'll be able to tell you whether a property is a bargain, what neighborhoods are up and coming, and where you should move to take advantage of essential amenities like parks or schools.
A reputable real estate agent will also bring with them valuable negotiation skills. That matters when you get to the stage of making an offer on your dream home.
Take Advantage of Technology
A few decades ago, house hunting in a different state would leave you limited to a few photos on a website. But things have changed, and newer technology means you can do a lot remotely when searching for a new home.
Look for homes marketed with a virtual tour. These will help you explore the inside of the property more realistically. It gives you a better feel for the layout and space than photos and floor plans.
Video tours are also beneficial for the same reason. And you'll get to see more of the house than you can from a photo taken from the most flattering angle.
Another helpful bit of tech is interactive maps. When you explore these, you'll get a much better idea of the neighborhood. You can check transportation, local shops, nightlife, parks, and anything else on your priority list.
Time Your Visits
If you are planning to visit the state before you move, ensure you time it to make the most of that opportunity.
Draft a shortlist of potential homes before you visit and enlist the help of a local estate agent. Check all the bookings to ensure ample time to get around as many properties as possible.
Putting pins onto a map - virtually or on paper - is a good idea. If you are viewing in a busy cosmopolitan area, get advice from the estate agent about travel times in rush hour and other busy periods.
Use this visit as an opportunity to explore neighborhoods, too. Sometimes, you may form a different opinion on a good or bad neighborhood when you visit it in person.
Walk or drive around the streets and venture into local hot spots like cafes or restaurants.
If you are moving with family, try to arrange for some school tours at the same time. And if you intend to use public transport - for commuting, for example, try the route from start to finish to ensure it's doable.
Make an Offer
When you have your chosen home, you'll need to work with a real estate agent to make an offer.
Being remote isn't too much of an issue at this stage, as these negotiations happen over the phone or email. However, keeping in touch with your agent for updates is crucial.
Agree on a communication plan to ensure you don't miss something vital, like a time-sensitive decision. You will also need to pay for a home inspection before closing to ensure there are no surprises, like costly structural issues.
Understand Laws and Taxes
Each state has different laws and regulations you'll need to know before buying a house.
When researching legal matters, focus on state law concerning contracts, disclosures, and closing arrangements for a house sale. With financial rules, check what the law says about property taxes and exemptions.
If you have chosen a local real estate agent, they can advise you on these issues and may also be able to connect you with other local experts, like a real estate attorney.
Plan Your Move
When you make an offer on a home, and the seller accepts, you'll need to agree on a moving day. That requires some careful planning when you are moving from a different state.
Always hire a professional removal company. They'll offer the advantage of having the right equipment and other essential aspects such as insurance.
However, you'll need to secure that date in advance and have a contingency plan if your move date changes. Aim to declutter before you move, too. It will help keep your moving and storage costs down.
Sell items at a local market or online, giving you extra funds for moving expenses.
Set Up Your New Residency
There is some administrative work to be done when you move to a new state. Your most important priority is updating all personal accounts to your new address.
You'll also need to apply for a driver's license for your new state and register your vehicle.
Don't forget to register to vote once you move. Take some time to register yourself for essential services, like a doctor’s and dentist’s.
It's also worth getting recommendations for local contractors should you encounter problems with your new property, such as an emergency electrical issue.
Settling Into Your New Home
When you move, you might feel a sense of urgency to start unpacking all those boxes. But don't forget other essential ways to feel settled in a new home and state.
Explore the local neighborhood and find some essential destinations, like grocery stores.
Head to Facebook to see any local groups for your new neighborhood. It's often an excellent way to discover community events and allows you to meet people.
How to Buy a House in Another State Before Moving: Some Final Words
Having buyer remorse is fine when you are choosing your lunch. But for a big decision like a home purchase, you can't make a snap decision, which means careful planning.
Now that you know how to buy a house in another state before moving, use this guide to implement that plan.
Hommati is the perfect place to start. We have a massive database of the best agents across the US, plus a vast collection of houses to browse. So, start your new search right away by heading here.