Buying or selling a house can sometimes be a stressful experience, but it’s also often enjoyable. It’s another chapter in your life, and a chance for something new. Moving to another state opens up even more possibilities, and can really give you the fresh start you want. However, buying and selling houses in different states at the same time presents a challenge that not everyone wants to take on. If you decide it’s something you want or need to do, there are ways to make it a little bit easier.
Understand the Process
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For too many people who decide to buy and sell at the same time, the process becomes confusing and very stressful. They may not be sure how to proceed the right way, or get overly frustrated when things don’t go as smoothly as expected. Among the best ways to avoid those kinds of problems includes understanding how the process of buying and selling homes in different states at the same time actually works. It’s not a simple transaction, but it can be done if you have the right people working with you. That includes the other buyer and seller, along with the real estate team and the mortgage brokers.
It’s important to remember that it’s not just your transaction. You have a buyer for your house who may also be selling their current house, and you have a seller for the house you’re buying, who could potentially also be buying another house of their own. It can quickly become more complicated than you would expect, and with more complications comes the chance for more delays or problems. The more knowledge you have going into the deal, the more likely it is that you can get through all of it without so much stress.
Get Your Financing in Order
Buying and selling in different states is complicated enough without worries about your financing. Getting pre-approved is a good idea, of course, before you even start looking for a new home. That way you know what you can afford, assuming your current house sells. The home prices in your new location may be considerably higher or lower than the home prices in your current location, so you’ll want to be aware of that. The taxes and insurance may also be very different, so you’ll need to check into how that will affect your mortgage payment.
While you’re talking about financing, ask about a bridge loan. These are designed to help people get into a new house before they sell the old one, so they can carry both mortgages for a short period of time. They aren’t meant to be long-term financing, but they can help you avoid losing the house you are buying if the sale on your current home falls through at the last minute or your closing is coming up and you can’t find a buyer for your current house. Bridge loans aren’t for everyone, but they’re worth considering if you really need one.
Focus on Due Diligence
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Unless you’re buying in a neighboring state where you can easily drive to your new location in a couple of hours, you may not get to spend a lot of time in and around the new house before you buy it. Some people even buy a new house without ever setting foot in it. That can actually work out just fine, as long as you do your due diligence. You want to make sure the house is going to be right for you, and you also want to know that the house is safe, clean, and passes inspection. Get a home inspector to take a careful look for you, and to let you know the true condition of the house. Pictures can hide a lot of things, and if you can’t be there in person you need a very thorough inspection.
Learning all you can about the house can give you peace of mind, and can help ensure that you choose a place that will work for you. Ideally, you should tour the house in person and be present for the home inspection, but that’s not always possible. If you know someone in the area that could be present for that inspection it would be valuable, but it’s not required. The inspector will provide you with a report you can go over, so you can decide if you want to proceed with buying the house. Don’t forget to be diligent about your current house, too. Inspections will be needed and repairs might have to be made.
Know the Area
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Along with knowing about the house, you should also know the area. If it’s not a place you’ve been to before or spent much time in (such as when you have a job transfer to a new location), visiting for a few days is always recommended. Unfortunately, it’s not always possible. It may be too far away, or you may have too much going on with packing up your current home. Learning about the area online can help, although it’s not quite the same as being there in person.
Expect Delays and Prepare for Them
Anytime you’re selling a house in one location and buying in another, there will be delays, problems, frustrations, and confusion. It’s just a part of life. Fortunately, if you stay open to changes and challenges, you can mitigate a lot of the aggravation and get through the closing process on both homes as smoothly as possible. When you’ve sold your current home and closed on the new one, you can get moved to your new location and start enjoying all the area has to offer.
