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Selling My House and Moving to Another State
Whatever your reason for relocating, selling your old home before you move is desirable. The sale proceeds of the home sale can cover your moving expenses and provide you with a down payment for a new home. Of course, there are several ways to sell your house and we've covered all of them in this blog.
To sell a house when moving to another state, you can either sell before or after your move. Selling before the relocation is ideal since you won't have to pay double closing fees. Moreover, if you want to sell fast, selling your home to a cash buyer is common. They'll arrange for closing in as fast as seven days if there aren't any major issues with your property (such as liens).
Relocating for a job or family can be daunting, especially when selling a house at the same time. To guide you through the sales process, check out this entire blog.
Why You Should Sell Your Home Before Moving to Another State
When relocating, most people focus on the new life they're about to build in a new city and set aside dealing with the properties and assets they leave behind.
Unless you are someone who can afford not to sell your property and hire a property management company, you should see to it that all your assets, especially your home, are taken care of.
In connection with that, here are some of the reasons why you should sell your house before moving out of state.
Home Relocation is Expensive
If you haven't sold your home, relocating will drain your savings.
According to Forbes, the cost of relocating in 2021 is 15% higher compared to 2020. If you plan to move from California to New York with a truck filled with 1,000 cubic feet of your stuff, you can expect to pay $8,500 to $9,500.
These moving costs are exclusive of the down payment for a new home, security deposit if you rent, packing supplies, moving insurance, pet boarding, etc.
You also have to factor in some hidden costs when relocating, such as stair fees (movers charge this when you're moving to a building with high stairs), fees for moving extra large/heavy items, separate movers for valuable items, expedited mover fees, fees for local professionals who'll help you pack and unpack, and tip for your movers.
Moreover, when you settle in your new home, you have to buy some essential supplies such as food, grooming needs, etc., which may incur a considerable amount. You would also need to pay for mortgages, taxes, utilities, and maintenance.
When you sell a house, the sale proceeds will make your move a little bit easier.
Vacant Properties are Risky and Difficult to Sell
Leaving your property vacant and living in another state spells disaster. For one, if anything happens to the vacant house (ex. leaking pipes, electrical issues, pests, damaged roofing, etc.), no one can immediately fix it.
If you then decide to sell the house, there are a lot of things to fix and it will be harder to get a competitive offer.
Another reason why you many choose to sell before moving is that vacant houses can be targeted by thieves. Air conditioning units, copper wiring, and some other items that can be sold for a price are usually targeted.
Vandals and squatters can also damage your property if they discover it is unoccupied. Squatters, especially, can take over your property as if it is their own. You won't be able to evict them right away as they also have their rights.
Paying Two Mortgages and Homeowner's Expenses isn't Cheap
Being a property owner means paying for mortgages, utilities, taxes, maintenance, HOA fees, and home insurance. These fees are quite expensive, but imagine paying for two houses. It would be like living in two states.
Selling your home before moving would mean you'll only pay for one property at a time. You save yourself from the stress of spending thousands of dollars for two properties when you are only living in one.
Options When Selling a House and Moving to Another State
When selling a house for relocation, you have to time the sale. As mentioned, selling before you move is more suggested to avoid paying for the expenses of two homes. But to help you visualize your options, here's a comparison of what will happen when you sell before and after moving.
Sell the House Before Relocating
Selling your house before relocating means asking for a rent back agreement or renting in the new city. We will discuss the rent back agreement in a separate section of this blog, but generally, it means that you ask the buyer of your home to rent it out to you until you move.
On the other hand, you can rent in the city you are moving into to help you get settled while selling your home. When you sell a house before the sale, you will have the funds to rent and your finances will be in order when you finally find the right home.
Sell the House After Relocating
Selling the house after relocating would be challenging, especially since you won't be physically present in all the transactions. You would have to hire someone to process everything in your stead.
It would also be expensive on your end since you will be financing two homes at once. You'll pay a double mortgage, double utilities, ongoing taxes, etc.
In addition, you have to ensure that the house is in great condition all the time, which means you have to pay for property management to look after it.
We do not recommend selling your home after you move to another state, but if you do not have a choice, consider selling your property to a cash buyer as they create a faster home sale.
What are the Steps to Selling Your House and Moving to Another State?
Selling a house when moving out of state is just like any typical home sale; however, you are under a time constraint. You need to sell quickly if a relative is sick or you are chasing a new job opportunity.
Ultimately, the best way to sell your house if you are moving out of state is to sell to a cash buyer or investor who gives out fair cash offers. But in this section, we also included selling traditionally on the local housing market so you can weigh your options.
Selling to a Cash Buyer or Real Estate Investor
Cash home buyers or real estate investors are the go-to of many home sellers when they need to sell house fast. This is understandable since these home buyers are quick to make an offer, even quicker to close, and buy houses as-is.
The process of selling a house as-is to a cash buyer is straightforward, even if you've already moved to another state.
Request a Cash Offer
When you find a home buying company or real estate investor dedicated to helping homeowners sell their burdensome houses fast, the first step is to ask for a cash offer. Typically, you can do this with a phone call. But some cash home buyers may also request you to fill out a form on their website.
When you ask for a cash offer, communicate your timeline to the cash buyer. This is so they can prioritize the sale of your home.
Ask for a Rent Back
The best thing about selling your old house to a cash buyer or real estate investor is that when they buy houses, they allow rent backs! If your move isn't in a few months, you may ask the cash buyer for a rent back or leaseback agreement.
A leaseback agreement means you can continue living on your property after the closing date as long as you pay the new owner rent or settle the monthly payments.
In other words, the new owner would be your landlord for the period you want to stay in your old home. This works for both the buyer and the seller.
Another great thing about a leaseback agreement is that you have a roof above your head while searching for a new home in another state. You don't have to stay in hotels and pay for a storage facility to keep your things.
Note, however, that the first months rent for a leaseback agreement is usually higher than your mortgage payment since it is calculated based on the monthly mortgage payments of the property, ongoing taxes, and all the costs of repairs, among others.
Expect a Home Visit To Confirm Condition
After the investor has given a ballpark offer range, they will schedule a visit to your old house to confirm condition.
This is so they can come up with an accurate and fair cash offer. They can't really assess the value of your home without seeing it personally and determining repair costs.
Review and Sign the Contract
If you accept the buyer's no obligation cash offer, the next step would be to review and sign a contract that they'll electronically deliver.
This will make the deal official. If you aren't confident signing the contract right away, hire a real estate attorney to review it for you.
Ask for a Flexible Closing Date
Cash home buyers don't only give fair cash offers, but they also allow flexible closing dates when they buy houses.
If you are set to move out in a few weeks, you may request the cash buyer to close before the date of your relocation. This way, you won't have to rent in the new city or stay in hotels while waiting for your house to sell.
If there are still a few months before the relocation, you can always ask for a rent-back if the cash buyer wants to start earning from their investment property right away.
Close on the Property and Move Out
On the closing day, there is less paperwork that needs to be signed since no mortgage lenders are involved. If the seller is set to occupy the house as a tenant after, this is also the time when a leaseback agreement is signed.
Meanwhile, if they aren't planning to stay, they'll be expected to be out of the house on the day of closing.
Selling with a Real Estate Agent
Selling a house with a real estate agent when you are moving out of state is like other traditional house sales. The process takes a lot longer because there are many preparations to be made and the house will be listed on the local MLS.
Generally, selling your current home traditionally means:
- Finding the best real estate agent
- Developing a strategy with him/her
- Getting a pre-sale inspection
- Repairing or renovating
- Taking professional photos of the property
- Listing the house in the MLS
- Scheduling open houses and showings
- Negotiating offers
- Gathering essential paperwork for the closing process
- Closing with a real estate attorney or title company
As evident in the list above, you have to dedicate time and money when selling your current home with a real estate agent or with the help of a real estate solutions firm. You should also have enough money to fund repairs and renovations if you want the house to sell at a fair price.
If you are moving out of state, going this route may be more challenging as you also have to manage the moving process. You can't really tell when a buyer would take an interest in your traditional listing, so the sale timeline is unknown.
Meanwhile, if you have already moved out of state, you might not be able to handle the demands of a traditional home sale such as lender required repairs.
Nevertheless, if you decide to sell with real estate agents, communicate your selling goals early so they can formulate a strategy that considers your move. Expect to pay 6% in agent commissions for their help in the process.
Tips When Selling Your House and Moving Out of State
Time is of the essence when selling your current property and moving out of state. Surely, no one wants to pay for the tax and mortgage of two houses when dealing with a long-distance move.
That being said, here are some tips to help you sell your house fast and to avoid double closing fees and other expenses.
Price the Property Competitively to Attract Buyers
If you are selling your vacant home traditionally, you may want to be aggressive in pricing. This means that you price lower than your home's market value to create competition and speed up the sale.
Alternatively, if you don't want to price below market value to attract buyers, you can list your property a bit higher. The offers may come in slowly, but if you aren't pressed for time, you can wait for the one that is nearest your goal.
Time the Sale
You don't want to sell a house too fast that you are left with no home and you also don't want to sell slow that you'll face a financial burden to settle double mortgage payments.
The key here is careful planning and timing the sale. Communicate to your buyer that you are moving from out of state and ask if you can make the closing date contingent upon your moving timeline.
Since doing this can be challenging, if you really want flexible closing dates or a rent back agreement, selling your current home to a cash buyer could be a great fit. Most investors will gladly accommodate your request and negotiate a leaseback that's a win-win for everyone.
Get a Bridge Loan to Pay for a New House
Depending on your circumstances, you may find that taking out a bridge loan is necessary to finance your purchase of a new house fast. This is if your old property wasn't sold right away and you really need to move out of state.
According to JPMorgan Chase Bank N.A., a bridge loan is a type of short-term loan that you get to "bridge" the gap between buying and selling your home. Typically, you loan 80% of the value of your old home and the new residence you are eyeing.
Alternatives to Selling Your House When Moving Out of State
We understand that selling a property when you are going through a major relocation can be stressful. If you have the means to finance a new home, then you can opt to delay the sale or convert the house into something else.
Here are some of your options if you wish to keep the house.
Hire a Property Manager
If your current house is a family home that holds lots of memories or you are simply attached to it, hire a property manager to look after it.
Property managers local to your area can manage your home when you move to a different state. They'll manage anything for you, including the maintenance of your property, the payment of property taxes, and more.
Turn Your House into a Rental Property
Why let your vacant home sit when you can rent it out? A property manager will manage tenants as well as maintain your house until you want to retire and live in it again.
Renting out your property will allow you to earn. The rental property will generate income even while you live miles away.
Keep the House as a Vacation Home
If you have the means, you could turn your house into a vacation home. This way, if you want to visit a family member or your relatives, you have a place to stay.
If everything gets overwhelming for you at some point in your life, you have a house where you can retreat and rest.
Final Thoughts: How to Sell Your House and Move to Another State
Selling your house and moving out of state has a lot of advantages. It would help you avoid paying for the expenses of two houses and you'll get to have enough money for the downpayment of a new home.
Regardless of the reason why you are moving and selling your property, your goals will dictate how you sell whether it be to a cash buyer for flexibility and no fees or an agent if you have the time to wait.
If you are ready to sell your house and move to another state, let Sell My House Fast be one of your options! We'll give you a fair all cash offer and allow you to choose your moving date.
Fill out our form below or contact us at (844) 207-0788 to start selling your house before or after you move to another state.