How to Sell a House While Living in Another State?

Not everyone can live in their house (or nearby) when selling it. You may find yourself in a completely different state while navigating the real estate process. Some people have to move for work, while others inherit a home from a relative who lived across the country. 

Selling a house in another state comes with some challenges, but it can be done successfully with the help of a professional real estate agent. This guide will cover your options for selling a house, from a traditional listing to working with cash buyers, along with a few ways to streamline the selling process.

Learn how to sell a house while living in another state so you can start the next chapter of your life.

Options for Selling an Out-of-State Property

The first step is to decide how you want to sell your house. There are several options to choose from, whether you plan to hire a real estate agent or look for cash buyers who want an investment property.

Each option comes with pros and cons, so weigh your priorities to choose the best path to reach your goals.  

Selling with a Traditional Real Estate Agent

This is the best option if you need to sell a house in another state. You can hire a trusted real estate agent through FastExpert, and they can represent your best interests through the listing, negotiation, and closing process. Their goal is to get the best price for your house by setting a listing price at fair market value. It may take more time to sell the home through this option, but the financial benefits can be worth it. 

Selling to a Cash Buyer or Real Estate Investor

You can also look for cash buyers who might be interested in your home as an investment property. This is often the best choice if you want to sell your house fast. You can get a deal quickly, sell the property “as-is” without repairs, and close within a week or two. 

The main drawback of this option is that you will potentially get a lower offer for your home than you would compared to a traditional listing. However, if the house is a financial burden to you, selling it fast might be the right choice. 

Not every cash offer comes from an investor looking for another rental property. You may receive a cash offer if you list with a traditional agent from someone who doesn’t need a mortgage and who wants their bid to stand out. These offers allow you to close quickly because the buyer doesn’t need to go through the underwriting process.

Using an iBuyer Service

An iBuyer (internet buyer) is an online service that uses algorithmic pricing to identify the value of your home. This is similar to using a cash buyer, except there is an additional tech element. 

There are multiple drawbacks to using iBuyers. First, they only operate in certain markets, so you might not be able to find one to work with you. These companies are also known for low-balling sellers. This means you might get a lower offer and cannot negotiate it higher. While this option can be convenient, you might lose money. 

Listing as For Sale By Owner (FSBO)

For Sale By Owner is the hardest option across the entire real estate industry, no matter where you live. You have to handle all of the market, negotiations, and paperwork yourself. This is almost impossible to do remotely because you cannot host showings and open houses.

The main benefit of FSBO is that you don’t have to pay a commission to a seller’s agent. However, you still may need to pay the buyer’s agent, so you will likely only save 3% on the home sale. The effort might not be worth the savings.

Key Challenges of Selling a House from Out of State

Maintaining a house in a different state isn’t easy. You have to manage the property and keep up with its expenses until the closing date. You also need to trust that your real estate agent is doing a good job marketing and selling the house. Here are a few common problems that homeowners face. 

• Paying two mortgages: If you move out of state and buy a house, you may have to juggle two mortgages at once until your other home sells. 
• Balancing property taxes and maintenance costs: Your mortgage isn’t your only home expense. You will also have to keep up with utility bills, repair costs, and other fees. 
• Paying capital gains tax: Now that you are in another home, the house you are selling is not your primary residence. This means you might need to pay capital gains tax.
• Maintaining a vacant home: houses without residents are at a greater risk of theft or vandalism. They are also more likely to deteriorate or have problems that grow worse from neglect. It is also hard to maintain curb appeal from afar – you don’t know if a tree branch falls or the plants are overgrown. 
• Coordinating showings: You will need to handle the home sale without being present, which includes having open houses, managing paperwork, and closing on the property. 

Selling a home from another state is difficult, but the sooner you start the process, the sooner you can close. Unless you plan to use the second home as a vacation or rental property, you don’t want to continue to maintain and manage it. 

Should You Sell Before or After Your Move?

Some people can choose between selling before or after they move, while others need to relocate quickly or sell a house they never lived in full-time (like a vacation home). If you can choose between moving or selling first, consider the various factors that come with each decision.

These include your ability to carry two mortgages, your moving timeline, your personal priorities, and the real estate market as a whole. 

Benefits of Selling Before Relocating

Selling before relocating is ideal if you want to use the sale proceeds to finance your move and your new home purchase. This option also allows you to avoid the financial burden of managing two properties.

Homeowners can also be physically present for the selling process, which means they can attend in-person discussions and make sure the home is in peak condition for potential buyers. 

Benefits of Selling After Relocating

Selling after relocating gives you a more flexible timeline. If you need to prepare the property for sale (by making repairs or staging the house), you can do so on your schedule. You also don’t have to rush and accept offers just to sell and move. 

This option also allows you to focus on settling into your new location. You can find a house you love and enjoy your new community before selling your other home. 

Finally, waiting to sell can help you successfully navigate the real estate market. You can find a time that works for listing based on both your needs and macroeconomic conditions.

How to Find and Work with a Real Estate Agent Remotely

If you have already moved and need to sell your house, you can still have a smooth experience as long as you hire a trusted real estate agent. You will follow many of the same processes to interview and evaluate Realtors for an out-of-state job as you would if you still lived in the house. 

Here are a few questions you should ask potential agents whom you interview. These can start healthy discussions about the process and make you feel confident in your choice to sell. 

• What is your experience working with out-of-state sellers? 
• What steps do you take to make the process easier for them? 
• How will you keep my property safe while it is vacant? (Discuss lockboxes, managing contractors, and being present during showings.) 
• What processes can we put in place to keep the property in good condition, like hiring a law service or scheduling regular maintenance checks? 
• How will you market the house to interested buyers? 
• If the house is in a different time zone, what hours are appropriate to contact you? 
• What communication can we expect from you and through what formats (text, calls, emails)? 

Along with interviewing each potential real estate agent, read objective online reviews to learn about their performance and the experiences other clients have had working with them. You can also ask for references if you prefer. 

It is always important to feel confident in your Realtor, whether the house they are selling is just a short drive away or across the country.

Steps to Sell Your Home While Living in Another State

Navigating the real estate process from another state should feel similar to handling a home sale in your local market. Here are a few steps you can expect to take as you hire a Realtor and prepare to list your home.

Essential Pre-Listing Tasks

Very few homeowners list their house as-is. Instead, they complete pre-listing tasks to declutter, make repairs, and remove valuable items. On average, homeowners spend $5,400 to prepare their home for sale. This ensures they get fair market value offers for the property. 

Even if you are eager to sell, the pre-listing work can take a few weeks. Especially if you discover major repairs that need to be made. Here are some tasks you will need to complete.  

• Remove any remaining items in the home, including valuables and items you do not intend to leave (like laundry units). 
• Secure the property against potential criminals. This includes setting up security systems and ensuring the locks are strong. 
• Schedule a pre-listing inspection to identify potential issues. Major problems (like a damaged roof or the presence of mold) can cause buyers to walk away from the deal or slow the sale because of repair requests or negotiations. 
• Decide which repairs are worth making. Some sellers might prefer to offer cash concessions instead of spending time and energy making repairs. 
• Increase the curb appeal. Invest in a landscaping service to create positive first impressions for buyers. 
• Confirm the local market is right for a sale. Time the listing alongside market trends to increase the chances of getting offers. 

These steps will take time, but they can also increase your chances of a stress-free sale. For example, a pre-inspection prevents you from discovering unwanted surprises when a potential buyer brings in their own inspector.

Finding and Managing Contractors Remotely

It’s rare for a single person to handle a real estate deal from start to finish. Usually, a team of professionals works together to help both buyers and sellers. Your Realtor should be able to tap into their network to find the right contractors and experts to bring the home sale from listing to close. 

These professionals will include a title company, real estate attorney, home staging expert, photographers, and other specialists who can guide your home sale. For example, if you have a dirty driveway and home exterior, your agent might recommend a pressure washing company that can improve your curb appeal. Every home sale is unique and will require a team of specialists to bring the buyers to the closing table. 

Because you are relying on your real estate agent to hire these professionals for you, make sure you are clear about their costs before they do the work. Set up digital contracts and payments so you can track your expenses related to the home sale. This is particularly important if you may have to pay capital gains tax, as some of these expenses can be deducted.

Staging Considerations for Vacant Homes

Your Realtor should walk you through their marketing strategy for selling your home and discuss any opportunities to attract buyers and bids. For example, if the house is vacant, they may recommend staging the property to show buyers what it would look like if it were lived in. 

Another option is to invest in virtual staging options that provide a digital mock-up of a staged home. The virtual staging process is often easier and more affordable because no one is actually moving furniture in and out of your house. The goal of virtual staging is to attract interest and increase the number of showing requests. Once interested buyers walk into your home, they can decide whether it’s the right fit for them.  

Your agent should also discuss plans to show the house while it is unoccupied. In many ways, selling a vacant home is easier because buyers don’t have to work around the showing schedule of sellers. They can host open houses or tours whenever they are necessary. However, the agent should also be mindful of security concerns and make sure each door is locked before they leave. 

If someone breaks into the house and damages it, you are still the owner and are responsible for repairs. Your agent’s attention to detail can protect your home and save you money.

Remote Document Signing Options

Selling a house long distance is easier than ever, thanks to modern technology. Digital closing options are made possible through online software, and more companies are happy to send contracts over the web. Confirm with your Realtor that they can handle paperwork digitally and use a Remote Online Notarization (RON) system for official documents.

Create a folder on your computer to store all of your Realtor emails and any documents you sign. Holding on to this paperwork is essential in case there are any legal complications in the future. Saving these documents will also help you in the spring when you are paying taxes. You can include the forms in your tax filing and may be able to save money on your overall bill. 

The entire process of selling a home can be complicated, whether you are moving out of your first home or offloading a rental property. Saving your documentation can help you feel confident in each decision you make and informed about the negotiations, contingencies, and miscellaneous aspects of the deal. 

Closing the Sale

If the real estate market is favorable and you find a buyer who loves your house, you can move forward with the closing appointment. Your Realtor should provide documents outlining the closing costs and who pays for what. In some cases, the sellers will offer concessions to buyers, like a property tax credit, to ensure everyone gets a fair deal. 

The title company you work with should be able to set up a remote closing that won’t require you to sign physical documents. These closings became popular during the COVID-19 pandemic when it wasn’t safe to sign closing documents in person. The title company will wire any profits to your account and send copies of the paperwork for your records. 

Move to a New Location and Sell on Your Own Time

Not everyone has the luxury of choosing when they move. You may need to travel to another town and sell your home after you vacate it. An experienced agent will help you navigate the real estate market no matter where you are. They can sell your vacant home and ensure you get a fair price for it – even in a competitive market. 

Weigh your options and make sure that selling your home after you move is the right choice. If so, turn to FastExpert for help. You can review profiles of agents in different states and find the best one for your needs.

Your Realtor can make selling property easier, even if you are nowhere near the home. Hire someone you trust and increase your chances of having a positive real estate experience.