| Long Distance Homebuying
Over the past few years I have done a small handful of purchase transactions with buyers who are across the country and can’t visit the home. So far they have all been smooth and ended up being a very positive experience for all parties involved.
Here are a few tips if you ever need to do this type of purchase.
With intense variation in properties values across the country and an explosion in entails, the prospect of buying a home far from your current address are looking up. Any home purchase can be stressful, but trying to manage the selection and processing from afar can bring even the most experienced real estate pro to tears. Here are some tips to help you find your home away from home without losing your mind or your money.
1. Perform background research
What works for most may not work for you. Austin is fantastic-if you’re OK with muggy summers. Portland is amazing-unless you hate the rain. If you’re looking for a potential residence, a little research will help you narrow down your lost of dream cities. Start with some research on climate, crime, and demographics. Quiz sites like findyourspot.com are unscientific but fun, and can help you locate areas you wouldn’t have considered. Once you’ve made a short list, investigate average home prices to ensure that you’re not pricing yourself out of the market before you begin.
2. Community Message Boards / Web Sites
Now that you have a target, search for local communities online. Free message boards like Craigslist and review sites like Yelp can be great places to meet locals and get a town’s feel. Explain your situation, concerns, and “must haves” to the community, but take everything with a grain of salt. Anonymous users will often exaggerate, may have a personal axe to grind, or may be promoting their own product or agenda. Still, it’s a good place to start.
You should also look for public forums dedicated to planned communities, rental developments, or Homeowners Associations in your town. Again, these may be somewhat slanted toward complaints, but the people behind the posts will be somewhat less anonymous than other sites, and they could provide necessary input on step 3.
3. Get a referral
If your online research leads you to a good REALTOR©, it was worth the effort. A knowledgable, local REALTOR© will be able to translate your requirements and limits into a realistic list of possibilities, while explaining options you hadn’t considered. A REALTOR© will also let you know if your demands are unreasonable, and can suggest ways in which you might be able to compromise.
A REALTOR© is a professional, and should be treated as such, so come to the table with as much information as you can. Financial records, pre-approvals, addresses of homes you find interesting, and a detailed list of must-haves and deal-breakers will show the REALTOR© you’re serious about this transaction and help her get to work quickly and effectively.
4. Visit the area
It’s not recommended to buy a property sight-unseen (sometimes it’s not in your cards) but eventually you will need to visit the area. With your preliminary research complete and a broker on the case, you can probably get in and out in just a day or two if necessary. Remember to save all of your receipts, as some of your trip may be considered a business expense. Check with your accountant to be sure.
5. Find a friend
If you made any online friends during your research, your trip would be a good time to reach out in person. In addition to building a social network, making contact with a few friends can give you eyes on the ground. Most purchases will require several trips out, and having a friendly representative who can visit open houses, take pictures, and report back can be a lifesaver.
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I’ll have less to invest in my next home, and I won’t be able to afford the property I really want.” That makes sense if your home’s property value is being depressed more than the homes you’re considering buying, but since most of us tend to move locally, that usually just isn’t the case. If prices drop by a similar percentage, you’ll spend less money if you move up while prices are low.
multi-unit dwellings, long-term home rentals, new construction, or improving and reselling, there’s a big potential upside, and timing has never been better. But here are a few cautions to keep in mind as you embark upon your journey.
Remember to factor home repairs, family savings, and any other planned expenses into your budget-then stick to it. You don’t want to nickel and dime yourself out into foreclosure.
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