4 Tips For Buying A House In Another State For Colorado Springs Investors

Buying A House In Another State

Buying a house in another state can seem overwhelming and risky. However, if you are armed with the right information and ask the right questions, you’ll open the door to amazing real estate deals all over the country and even all over the world. In our latest post, we explore what you should be looking for when buying an out of state property!

Have you considered buying an out of state property? If you plan on buying without seeing the home for yourself first, you’ll need to do some more homework than someone seeing the property with their own two eyes. Below, we offer some tips to help you when buying a property out of state so you can find and choose the house right for you!

Tip #1: Work With The Right Team

When buying a home in another state, it is important to work with a team of people you can trust. You will need to lean on them to provide you with a clear picture of the property.

  • If you are using an agent, make sure it is someone who is highly reviewed and trusted in your area.
  • The inspector should have extensive experience and references in the area. You’ll want to make sure you know exactly what they are inspecting and what you may need to hire a specialist for.
  • When buying a house out of state, it is important you are working with a professional and trusted title company. You will need to have a comprehensive and complete title search done before buying the property.
  • Do you have a friend or a family member in the area? If so, you can have them scout the home on your behalf. You can even hire someone if you don’t know anyone in the area. Have them view the home, take pictures, and provide you with honest feedback. They will be able to let you know about the weird smell coming from the kitchen or the loud noises from the street outside. They will be able to tell you about all the things that photos just can’t capture.
  • When buying and selling investment property, you should always have a good real estate lawyer at your disposal who is familiar with the real estate laws within the state you are buying.
  • A smart investor will have a CPA or financial planner they can turn to for a better picture of their financial picture, ensuring the don’t overspend or buy a house that won’t be profitable.

Tip #2: Ask About The Area

In addition to all of the questions you will have about the property itself, you should also consider things like local schools, the local economy, and job growth. Whether or not you have kids going to school in the area, school ratings greatly impact property values. You’ll also want to know about future development in the area and how it will potentially impact how much your house is worth. You’ll want a strong job market if you plan on renting the property out. Your tenants will need to be gainfully employed. Try to learn as much as you can not just about the house, but the neighborhood in which you are buying too. The geography of a property can greatly impact the profits you will be able to attain and will make all the difference when buying a house out of state.

Tip #3: Do Your Property Homework

You’ll want to learn about the background of the property to make sure nothing pops up out of the blue down the road. Make sure permits have been pulled for all previously completed work. You’ll want to research sale and tax history to ensure it is in line with what you are committing to the property financially. You don’t want to be surprised by high property taxes or find you have paid too much for the home. All of this information is public record and be found via your property appraiser and even through sites like Zillow and Trulia.

Tip #4: Include Contingencies In Your Offer

As with any offer, you should make sure to include contingencies. If after the inspection, something comes back as a major problem, you’ll want to have the ability to back out of the sale without any repercussions. Contingencies are fairly standard when buying a home, just make sure you don’t find yourself committed to purchase even if the home doesn’t do well in the inspection. Contingencies are important to safeguard you from buying a home that won’t end up being a profitable experience. Have your lawyer review your contract to ensure you are protected before making an offer on a house that is out of state.

Do you want to learn more about buying a house in another state? We would love to help! Get in touch with us today for more information! (719) 602-4409

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