Selling in One State and Buying in Another

I recently had some buyers moving into the Cullman area from Raleigh, North Carolina. They were an absolute blast to work with and were veterans when it came to real estate transactions, as they’ve lived in a few different states and purchased and sold several homes around the country. So let’s talk things to consider when you’re selling in one state and buying in another.

First thing’s first- you need to identify your “why” for moving, your timeline, and get communication with a great realtor started VERY early on. I started talking with Jeff and Elise at least a month before their home in NC was on the market. This helped me get to know them and I really got to understand their situation and how I could best help them. So find an awesome realtor and start there.

Ways to Get it Done

In southern lingo “There’s more than one way to skin a cat” and that’s no exception for selling in one state and buying in another. Let’s look at a few ways you can get this done. Many of these apply to moving in general (even if it’s across the street) but making a large move definitely throws some difficulties in the mix:

Sell, move, and then buy.

This may be your safest bet financially. Selling your first house before moving guarantees that you’ll have the funds from the sale for your down payment or closing costs for your buying transaction. This is what my buyers did and I have to say that it ran so smoothly this way.

The difficult aspect to this will be loading up all of your belongings and vehicles, making a big long drive, and unloading EVERYTHING you have, essentially, into a storage unit. You also have to secure some housing before making this move unless you plan on living in a hotel while you house shop! My clients luckily had family in the area and they stayed at a gorgeous lake house while they home shopped. Check into short-term rentals, apartments, or even long-term Airbnb stays.

Buy, move, then sell.

This option ensures that you have a house to live in and gives you plenty of time to make the move. You won’t be stressing over where your things (or you) will go, but the flip side is that you may get stuck with 2 mortgages to pay for a short time.

For this option, talk to your loan officer about different financing options. A bridge loan may be the best option for you. You might also want to check into having a remote closing or e-signing documents for the sale of your home.

Buy + Sell at the Same Time

This option is ideal but takes a LOT of coordinating between your realtor(s), loan officers and closing offices for each transaction. Having the sale of your first home and the purchase of the second in the same day is ideal, but tricky to line up when folks are states away. This IS possible with the right team in place though, OR could be done just a few days apart.

Purchasing a home sight unseen may be an option if you want to stay home for the sale of your home and move once you’ve closed on your purchase. Having a great realtor that can give an exceptional virtual tour and answer all the questions about your home/facilitate inspections is a MUST here.

Rent back option

In the past 2 years, MANY sellers have been utilizing the option to lease back their own house from their buyers in order to stay until they get their new home closed on.

Alternatives to selling

Of course, if you can personally afford to keep your current home as a rental unit, that will make your moving process much easier. Being far away, you would want a trusted friend/family member or a rental management company managing your rental for you. This is a great way to build wealth and keep that real estate.

Keep in mind that you might want to use some tactics to sell your home quickly in this scenario such as pricing your home competitively to get a quick sale. This especially applies if you’re selling your home as-is.

You + Buyer's Agent = BFFs

Your relationship with your buyer’s agent is so important here. This is who’s going to be helping you coordinate so many things into a town you may not be familiar with: storage units, moving companies, local inspectors and lenders, painting companies, etc.

Your buyer’s agent will also want to help you find somewhere to live such as a rental or apartment if you’re planning to sell and move before purchasing. Unless of course you have family or friends to stay with in the area (also don’t sleep on the option of long-term AirBnbs.)

Keep in mind real estate law varies state to state and you’ll want your realtor to be able to answer any questions regarding due diligence or buyer’s rights when purchasing a home.

To the finish line

While waiting to close, you'll want to get started on transferring utilities, purchasing a home warranty if you want one, and setting up subcontractors to have any work done on the home if you’re moving in. You’ll also want to get a new license for your new state and update voter registration.

So this was a total BRAIN DUMP of things to consider when selling your home in one state and buying in another. It’s a complex situation and can be done so many ways. The most important takeaway though- make sure your team of realtors and lenders you’re working with is a good fit because you will be communicating with them a lot!

If you are selling out and looking to move to North Alabama, schedule a virtual consult with me and we will get you started on your journey!