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Purchasing a Property in Another State – How to Perform Due Diligence and Avoid Errors

April 28, 2017 0 Comments

When searching for a property in another state, it is important to perform adequate due diligence in order to avoid getting stuck with a less than ideal property. Since so many interested homebuyers take on a significant risk when purchasing out of state property, especially when doing so sight unseen, here we will focus on how to properly purchase a house in another state.

 

Secure A Real Estate Agent In The Market You Wish To Purchase Property

Arguably, the first thing that interested homebuyers should do is secure a real estate agent in order to assist them through the transaction. When working with an excellent real estate agent, interested homebuyers should have plenty of properties to choose from, as these professional will be able to pinpoint potential properties nearly immediately after they are listed on the market. In addition, working with a real estate agent is a good practice, as no one understands the local real estate market as well as they do.

 

Search Through Real Estate Classifieds In A Particular Location

Interested homebuyers should look through real estate classifieds in order to focus on all the options available in a particular location. Ideally, search for real estate classifieds that are professional in nature, have plenty of photos, and ideally, offer a video walk-through. After narrowing down the search to ideal properties, send them to a real estate agent for them to look over. Oftentimes, real estate agents will have valuable information to offer that can help make a buyer’s decision easier.

 

Purchase Properties In Real Estate Markets That Are Going Through An Uptrend In Regards To Property Values

While interested homebuyers who are moving from out of state are often confined to certain real estate markets due to a job transfer or similar situation, it is best to purchase real estate in a market that is going through an uptrend. Interested homebuyers who enter a real estate market that is just beginning its ascension have the ability to capitalize on homeownership and eventually sell their property for a profit. In this way, homeowners may end up with a real estate investment, rather than just a house.

 

Understand How Much Property Taxes Are In A New Location

Since property taxes throughout the nation vary greatly, interested homebuyers should understand exactly how much they are going to have to pay year after year in taxes. Taking homeownership costs into account should allow buyers to be able to make an informed buying decision.

 

Ask For Sellers To Provide A Video Walk-Through

Since photos often aren’t enough in order to really visualize a property, ask a seller for a video walk-through, if they haven’t already provided it. In some cases, sellers will even offer a 360° view video, enabling interested homebuyers to conceptualize a property in full. This will make it easier for homebuyers to select real estate that fits their needs. However, realize that a video doesn’t completely offer interested homebuyers a full understanding of a residence.

 

Physically Visit A Property Before Bidding On It

Interested homebuyers should absolutely visit a property before submitting a bid on it. Since there are so many horror stories about people purchasing real estate online and then showing up to a dilapidated residence, one of the most important steps of due diligence involves checking out a property personally. While plane tickets across the country aren’t cheap, it is mandatory to make the time to actually see a property. Homebuyers should consider this trip an investment, as they will be able to fully grasp the pros and cons of any particular property. Ideally, tour a number of different properties on this visit in order to narrow down the options available. When visiting properties in a particular region, consider this a vacation, rather than a chore.

 

Hire A Home Inspector Before Committing To A Property

Interested homebuyers should always hire a home inspector before purchasing a property. Since home inspectors offer their professional input, they are likely to notice far more details than a typical homebuyer would. Again, consider hiring a home inspector an investment, as they may be able to point out potential problems that could turn out to be devastating. Homebuyers who eventually purchase an inspected property likely won’t end up with real estate that has skeletons in the closet.

 

Receive Quotes From A Number Of Moving Companies In Order To Transfer Valuables Across The Country

One huge cost of purchasing a property across the country involves moving all valuables to a new residence. In many cases, selling these items beforehand and limiting the overall moving costs is likely the correct decision. However, homeowners who have a large number of items should search for the best overall rates from movers and negotiate with them in order to avoid overpaying for such services.

 

If You Own Real Estate Currently, Sell It Before Purchasing Another Property

In almost every case, it is better to sell current real estate before purchasing new real estate. Homeowners who own property should do everything they can to sell their real estate first, move their items across the country, and maybe even rent property, as they search for an ideal residence.
 
Homeowners who have already purchased real estate in another location, but still own a house in a different part of the country may find that it is difficult to sell their real estate when they are located a long distance from it. While it can be done, it is often best to just sell a property before purchasing a new property, as it will reduce stress levels significantly.
 
Interested homebuyers who are purchasing real estate across the country need to understand that due diligence is of absolute significance. Ideally, take all the time necessary to search for a property that is appropriate, work with real estate professionals like a Realtor and a home inspector, while physically visiting a property before submitting a bid on it. Interested homebuyers who understand exactly what they are getting themselves into will likely start their new life in a brand-new location on the right foot.
 

Alex Aberle

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