It’s best to sell a home when you are living in it or are just a driveway. You can be available for home showings, negotiations, and staging. However, sometimes, circumstances force us to sell a house far away. Either you have to move out because of job/surprising situations, or you inherit a house in another state.
In both situations, you have to sell an out-of-state property. In the case of moving, you might plan to sell your current residence. You might want to sell the other (out-of-state) house if you have inherited the house. Here are some tips to help you along the path.
It’s Best Not to Leave the House Vacant
A vacant home won’t sell sooner. When people see an empty house, they assume that something is wrong with the property or the seller has moved out and is desperate to sell the house. That situation doesn’t go in your favor as you might start getting low-ball offers after that.
Furthermore, having a vacant home only increases your insurance premium. It is worth noting that regular home insurance plan doesn’t provide coverage for an empty property. Your conventional policy expires after your home remains vacant for 30 days. Read your home insurance policy to know the exact duration.
The insurance premium goes up because the homeowner is away, so there is no one taking care of the property, which can result in damage. If you have to move out, you can consider renting your home. In case this option is not available, you can try:
- Hiring a local cleaning service
- Talking to your insurance company
- Discussing the situation with the local police department
- Stop getting mail and newspapers
- Selling the house as soon as possible
Understand the Process for Selling an Out-of-State Property
How can you sell an out-of-state property?
The answer lies in the legal procedures. When you inherit an out-of-state house, you need to be aware of inheritance laws in both of the states.
Two states can impose different laws regarding real estate inheritance. For example, one state might have an inheritance tax, while the other one may not impose anything. If you live in Connecticut, and you inherit a house in Florida, then Florida inheritance laws will apply in your situation. Sometimes, you have to pay these taxes in both states. If that happens, you can claim a tax refund later from one of the states.
That’s the case if you have inherited a house.
What is the solution if you’re selling an out-of-state property?
Well! In that case, you’ll pay capital gains tax to the state where you have sold the house. The process for selling an out-of-state property is like a conventional transaction except for the fact that now you have to manage the process from a distance.
How to Sell an Out-of-State Property?
Hire Someone to Tackle the Job
Selling a home is a multi-step process. You need someone trustworthy to handle the task. You can take help from a close relative/friend, or you can hire a professional real estate agent to deal with the situation.
First, the house will need repairs. If you’re planning to sell a home in the retail market, you’ll need to ask someone to renovate the house. At least, focus on the street view and repaint the entire structure. Once this is done, the next step is to stage the home.
Staged properties sell faster and for a higher price. It’s critical to stage a vacant home. You’ll either need the services of a professional staging company or some furniture & creative ideas to decorate the house.
Understand the Documentation/Process
Selling an out-of-state home means, you won’t be:
- Able to manage the process
- Signing the documents personally
- Present at the closing time
That means, all this time, you’ll need to trust someone to do this job on your behalf. It can be a stressful situation, especially if you & your representative is not familiar with the process of selling an out of state property.
In such situations, working with a reputable cash buying firm can benefit you. Find a trustworthy local company that has experience managing out-of-state sales & transactions.
Cash buying companies such as CTHousebuy have processes and tools in place to handle out-of-state real estate transactions. You can sell your home as-is. That means you won’t have to make any repairs. You won’t have to clean, repair, or stage the house.
Another benefit of working with a cash buyer is that you can get a fair cash price. It’ll be a fair estimate of your property’s worth, so you don’t have to worry about the price of your house.
The next good thing is that you don’t pay any commissions. In a conventional transaction, you can expect to pay 6%-7% in realtor commissions. When you sell to a reputable house buying company, you don’t pay any such commissions or fees. The real estate company will also pay your closing costs, which can be another saving of 2%-3%.
To recap, you’re selling as-is, you don’t make any repairs. It’s going to be a fair cash price offer, and you don’t pay any fees.
The next and most important thing is that professional cash buying firms have expertise in purchasing out-of-state properties. They have a team of professionals ready to assist you. You can take help from their side of real estate attorneys, tax lawyers, title company, and digital processes to complete the sale without hassle.
Since a system is already in place, all you have to do is to contact the company and explain your goals regarding the sale of your home. The company will take care of the rest.