“When I was a kid my parents moved a lot, but I always found them.”
― Rodney Dangerfield
Need to move? You’re not alone. Going interstate? Many people (and their kids) are doing that, too.
Of all people on the move this year, nearly a fifth will move out of state. And today’s interstate buyers have a great set of resources available to them online. Good, because pulling off interstate real estate deals means having a plan, and using the necessary resources to follow it.
What do interstate home buyers need to ask when preparing? Let’s take a look.
State Law Differences: What About the Deeds?
As our readers know, a deed is a legal document that a homeowner transfers to another person when selling a home. When buying, a person gets a new deed.
New ownership must be recorded with the county recorder of deeds, in the home’s county.
Be on the lookout for legal and administrative differences in your new state. Deeds available on this website are made to comply with each state’s recording laws — and with local county rules and procedures.
And What About the Taxes?
State and local authorities have their own requirements for taxing homeowners. As a buyer, do an online search in advance, and be aware of your responsibilities for property tax, and any applicable state or local sales tax. Your new county sets a tax rate that applies to your new home’s property value. Some states also tax profits from a home sale when you move, rather than later.
Got case-specific questions? Consult a real estate attorney about deed and tax requirements. Generally, keep taxes on your radar. Expect them!
State-to-State Move: Do I Need Real Estate Services at Both Ends?
Yes. When buying from a remote location, it’s critical to lean on a local real estate agent to get the job done right.
Tech-savvy agents can tour houses for you in real time. There are even services (search term: “home buying services”) that take homeowners’ current homes off their hands. And concierge services can get your current home ready for buyers to browse.
Real estate services cost money, of course — but the spending could result in a quick sale, so you can focus on scouting out your new home town. Know the fees and study customer reviews carefully before choosing a service.
Close the Sale First, Then Buy the Next Home?
Few people can afford to hold two homes at once, so sell-first-buy-later is a popular pick. Your current home’s sale proceeds can cover moving costs, and the cost of buying your next home. The faster you sell your current home, the sooner you avoid continued costs for its upkeep, taxes, and insurance.
What, then, is a seller to do between signing over one deed, and receiving the next? You might look into home-sharing services like Airbnb, or extended-stay hotels, to buy the time it takes to explore the new terrain. And, of course, plenty of people sell first, move, rent in the new locale, and search for the right home there.
The Mover’s Motto: Teamwork Makes the Dream Work.
You need a great team in the city you’re moving to. Hire wisely. Agents in both locations should be excellent communicators who have no trouble guiding clients over the phone.
Of course it’s no mean feat to create relationships and ask probing questions from a distance. When choosing a distant agent, read up on the local clients’ reviews. You can also ask the agent you already know to help refer you to a licensed agent who works in the town where you’ll be buying.
Your buyer’s agent can tour houses with you through an audio-visual app. It helps if the seller’s agent is up on technology, too. Sellers using today’s tech can invite buyers into immersive walk-throughs.
Be sure your agent and mortgage specialist are in touch with one another – not just with you. Professional diligence — especially diligence in communicating — is what wins in the interstate moving scenario.
And Another One: Familiarity Breeds Contentment!
To avoid buyer’s remorse, personally staying in the new city is the perfect way to prepare for choosing a home. In any case, it’s important to get familiar with the new environment in advance. Local online newspapers are helpful. Find a discussion site where you can explore local information with others in the know.
What if your new mortgage lender expects you to have two years of employment history where you’re going? If you’re moving with the same company, or at least doing basically the same work you’ve been doing for the past two years or more, a lender will likely be OK with approving you for the mortgage. Ask a mortgage consultant how the loan underwriter will treat your situation.
Pro(active) tip: Moving at the request of a corporation? The moment you’re offered a new position, ask if you have access to relocation support. Some companies offer packages that support certain employees with their moves.
Issue-Spotting: Will You Include These Four Key Steps in Your Long-Distance Home Purchase?
A successful state-to-state move means getting positioned to make an offer, or preparing your buyer’s agent to know what you want in a home. It also means having your financial ducks in a row.
A good exercise is to explore how you feel about each of four key decisions.
Should you…
- Consider setting up a new bank or credit union account in the town you’re moving to? These institutions might even point you to your perfect agent and mortgage company.
- Visit listings you like with your buyer’s agent when possible? Of course, you’ll have opportunities to tour homes online first.
- Show up when the inspector checks out your new home? Listening to the expert’s “play by play” can tell a buyer as much as the inspector’s report can tell a lender. It’s best not to miss it.
- Close remotely? Thanks to remote notarization, closings over computers are a thing. Need one? Let your prospective agent and mortgage consultant know you’ll need a willing and tech-equipped title team.
What Do You Think?
We hope this brief guide helps orient the reader to the issues arising in an interstate home purchase. Please understand that this is meant to be general information, and not personal guidance. That guidance needs to come from the purchaser’s pro team.
And finally, best wishes on your move. Don’t forget to take the kids.
Supporting References
Mehreen S. Ismail, Justin M. Palarino, and Brian McKenzie for the U.S. Census Bureau via Census.gov: Going With the Flow – State-to-State Migration (Jun. 8, 2023; on the number of people who move from state to state annually).
Larissa Runkle for the National Association of Realtors® via Realtor.com®: Selling a Home Out of State: 5 Secrets for Streamlining a Sticky Situation (Jun. 25, 2019).
Hometown Development Company via HometownDev.com: How to Handle Selling a House and Buying in Another State (Nov. 6, 2020).
And as linked.
Related topics: Buying a Home From Out of State, Selling a Home As-Is
Photo credits: Athena and Artem Podrez, via Pexels.