Five Things To Consider When Buying a Home in Another State
Moving down the street on a good day, where everything has gone exactly right, is still a monumental challenge. Moving to another state is a different animal entirely. For those of you who have done the former and not the latter, imagine a local move and then multiply its complications a hundredfold, and you’d be getting close to understanding it.
Moving out of state, and the process of buying a home across long distances, presents its own unique set of challenges. Fortunately, we live in an era where a few modern conveniences make it slightly less brutal, but all the same you’ll want to keep a few things in mind:
The Internet is your friend. Use it.
We honestly can’t stress this enough, because all of the following tips are going to require that you make use of the Internet. You’ll be using it for just about every step in the process, from initial research to finding an agent to viewing prospective homes to keeping in touch with your agent to double-checking real estate regulations in the state you’ll be moving to. You can find and check the backgrounds of local agents in the area. You can browse through hundreds of homes in a matter of days, and take virtual tours of promising ones to get a better feel for them. You can also find out where the best neighborhoods are, check crime rates, property taxes, and community features. All of these things are available to you at your fingertips, so take a break from memes and pictures of cats and make the Internet work for you!
Find a local buyer’s agent.
It goes without saying that you need a good agent, but you also need one who is local to the area you’re planning on moving to. We’ve said this many times before, but it’s worth repeating: no matter how many deals an agent has closed in a hot market like Venice Beach CA, those skills don’t necessarily translate into being able to help you close on a house in Lincoln, Nebraska. This is doubly important to keep in mind when you’re moving to an unfamiliar area, because the last thing you want is an agent who’s as unfamiliar with it as you are. A local agent will have contacts and relevant experience regarding their area, and they’re in the best position to advise you on building codes, affordability, access to community essentials, and school quality. The latter is especially important even if you don’t have kids, because good schools increase the resale value of your home. When finding an agent, you want to look for those who have good credentials, a history of positive reviews, and a good record of closed deals that match prices of similar homes bought and sold in the same area. So how do you go about finding all of this?
Do. Your. Research.
Seriously. The words “I know” shouldn’t be in your vocabulary at all in the initial stages of finding information about the area, and that should start with getting a feel for the city or county in general. What are home prices like? If there’s an outlier that’s below the average price of similar homes in the area, you’ll know to be wary of potential issues with it. What are crime rates like? How about schools? Building codes in case you want to renovate or add on to the property in the future? What companies are large employers in the area, and are there amenities like sidewalks, access to shopping, and community parks? What are property taxes like? All of these are a matter of public record and easily found with the most cursory of searches; you just have to know what you’re looking for and be organized about it. You’ll also want to research local agents in the area. Are they well respected? Do they close deals on par with average prices in the area? Do they have generally positive reviews, and have they won any awards in their community? Do they seem reachable and answer your emails and calls promptly? Even things like the price of gasoline and bread are worth looking up. You don’t want to move and then get caught by surprise when your grocery bill is a little higher than is used to be.
Don’t assume building codes and real estate laws are like those in your area.
This is a very common mistake made by novice buyers. While the rules concerning the responsible parties when it comes to paying closing costs are similar in general across the board, there’s actually a dizzying array of details and differentiation between states. A local agent can help clue you in, but you’ll want to be aware of them yourself to better understand what’s ahead of you. Plus, you’ll need to keep in mind the sale of your own home in your state as you deal with buying another one to move to. This can get confusing, for obvious reasons. You can find out closing cost obligations by state here, but remember that this is only scratching the surface; some states require a survey of the property to take place prior to any sale, and some do not. There may be a good deal of red tape to get through with which you may not be familiar, so again, do your research and, as always, the Internet is your friend.
Plan for the future.
Even though the entire process of finding, buying, and moving into a house seems like just a means to an end, there’s no reason why the move itself should be considered the final goal. There may very well come a time in the future when you either need to or are otherwise prompted to sell and move again. This should inform your decision regarding which home to buy even if you don’t plan on moving again any time soon. Thus, the potential resale value of your new home is important to keep in mind, and if you’ve done your research properly prior to choosing a home, you should already have an idea of what it might be. For example, the issuance of new building permits (again, which are a matter of public record) can suggest new development that may strengthen the local economy and drive up home prices. A recent spike in property taxes can imply a recent county assessment or budget initiative to improve schools or other public services. Speaking of schools, you can also measure their performance against others in the state, and that’s incredibly important. Even if you don’t have kids, school quality is important to potential future buyers who do and increases the resale potential for buyers who don’t.
Purchasing a new home and moving is always a challenge, and doing it remotely or across several states makes it even more difficult. If you do your due diligence, however, you can make the process much easier on yourself. For more on market trends and real estate advice, be sure to sign up for our Priority Access List and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions