Buying a house out of state can be an exciting adventure, whether relocating your primary residence, purchasing a vacation property or investing in real estate.
However, it also comes with unique challenges, including navigating unfamiliar markets and coordinating logistics from miles away.
What's in this article?
With careful planning and research and the help of experienced real estate professionals, you can ensure your out-of-state move is successful.
Read on for our top five tips for buying a house out of state.
Research the local market
Every market has its own unique characteristics that are influenced by factors like supply, demand, job trends and local regulations.
Here are some steps you can take to survey a local market:
- Check out the current market trends: Look at data for median home prices, average time on the market and year-over-year price changes using websites like Zillow, Realtor.com or Redfin. For insights, you can also look at local news outlets or real estate blogs.
- Identify the cost of living and property taxes: Beyond a home’s purchase price, you need to understand the cost of living and ongoing expenses in the given area such as property taxes, which can vary widely even between counties.
- Evaluate the specific neighborhood’s quality of life: Schools, parks, recreation facilities, supermarkets, an assortment of shops and other amenities—not to mention public safety and security—are important factors in choosing the right property. Tap into local resources like social media groups or community forums to better understand the locale and its potential for future development.
The number one resource for local insights is a reputable real estate agent with experience in your area of choice. We’ll discuss how to find the right person in the next section.
Ready To Take Your Next Step?
Find a trusted lender and local real estate agent
When buying a home out of state, you need access to the right resources and support.
A trusted lender like Compass Mortgage and a knowledgeable local real estate agent are two essential partners in your journey who can help you through the complexities of remote home buying.
How a local real estate agent can help you
Local real estate agents have an in-depth understanding of the area you’re targeting and can provide insights on zoning laws and neighborhoods that match your preferences and budget.
Use these quick tips to help you find the right agent:
- Read reviews and ask for references from past clients.
- Evaluate the agent’s communication skills to gauge how responsive and tech-savvy they are.
- Ask if they can connect you with other reputable professionals, such as contractors, inspectors or appraisers.
- Check their credentials and experience.
Beyond their experience level and reputation, make sure they’re a good fit for you and match the communication style you need.
Why a trusted mortgage lender is just as important
If you need financing to purchase your property, you’ll have to find a lender with experience in out-of-state lending.
While your lender doesn’t necessarily need to be local, they should have the following capabilities:
- Experience in handling remote communication and transactions
- Knowledge of state-specific regulations
- Expertise in the details of the application process
Compass Mortgage’s Get Committed® program, an integral part of applying with us, provides a fully underwritten loan commitment that locks in your interest rate even before you find the home you want to buy.
It allows you and your real estate agent to put the most competitive and secure offer on the table, despite not necessarily being the highest dollar amount.
Your agent and lender can help you avoid potential pitfalls, such as appraisal gaps, zoning issues or other location-specific challenges.
Visit the area
The best way to make sure the property and neighborhood align with your expectations is to visit the area.
Such a visit will help you get a feel for the community and evaluate the property’s nearby amenities and new developments.
If you can’t visit in person, the following alternatives can help:
- Video walkthroughs or 360-degree tours
- Live video calls with your real estate agent
- Videos of the neighborhood and surrounding area (requested from your agent)
- Google Street View
- Social media groups
Discuss your findings with your agent to gain a full understanding.
Understand the logistics of remote home buying
Virtual tours and live walkthroughs are an important part of remote home buying, not just for viewing properties and surrounding areas but also for getting up close and personal with the most important parts of the home.
Make sure you get close-up views of the following areas:
- Kitchen
- Bathrooms
- Basement
- HVAC systems
- Foundation
- Roof
- Yard
When you get a professional home inspection, ask your inspector to provide detailed reports, photos and videos of any needed repairs or upgrades they identify.
You may also want to consider specialty inspections for complications like mold, termites or structural concerns.
Discuss your remote options with your lender and agent beforehand, including everything from the application process to closing.
Plan for the move and future maintenance
Once the out-of-state property is officially yours, your next steps depend on the purpose of your purchase.
Relocating
If you are moving to the out-of-state property, you will have the following considerations to make:
- Budgeting: Budget for moving expenses, including professional movers, packing supplies and transportation costs.
- Logistics: Create a schedule for packing, moving and arrival dates.
- Adjusting: Help yourself “settle in” by getting familiar with your new neighborhood, participating in community events and handling nitty-gritty details like updating your driver’s license and voter registration.
It may be helpful to declutter before moving. Create an inventory of all items so that you know everything arrives safely in your new home.
Vacation home, second home or investment property
If you purchase a vacation home or investment property, your to-do list will look slightly different.
Rather than planning for a move, you must consider managing or maintaining the property remotely.
Here are some things you can do to set yourself up for success:
- Hire a property manager, local landscaping services, cleaning services and HVAC professionals to handle maintenance and repairs.
- Smart home technology, including smart security systems, thermostats and water leak detectors, can remotely monitor the property.
- Find a reliable local contact—such as a neighbor or friend—to periodically check on the home.
Plan to visit the property regularly to make sure it’s kept in good condition.
Get Committed® with Compass Mortgage
Buying a house out of state can be complicated, but with the right team of experts by your side, you can enjoy a smooth process.
Compass Mortgage’s experienced loan officers are here to help with your questions and next steps.
Fill out our brief online form or call us at (877) 932-8221 to get started with your out-of-state home purchase.