TL;DR
Buying a house in another state is more achievable than ever thanks to virtual tours, remote online notarization (now legal in 45 states), and lenders who routinely handle out-of-state borrowers. The keys to a successful long-distance purchase: hire a local buyer's agent with relocation experience, get pre-approved with a lender licensed in your target state, research cost-of-living differences (property taxes alone can swing from $1,044/year in West Virginia to $9,767 in New Jersey), and plan at least one in-person visit before closing. Below is the complete playbook, including a relocation comparison calculator, a step-by-step timeline, and the financial, legal, and logistical details most guides leave out.
Why More Americans Are Buying a House in Another State
Interstate migration continues to reshape where Americans live and buy homes. According to the U.S. Census Bureau, roughly 25.9 million Americans changed residences in 2024, and migration data from multiple moving companies consistently shows the same pattern: people are leaving high-cost, high-tax states for more affordable markets in the Southeast, Mountain West, and parts of the Midwest.
Source: U.S. Census Bureau
Source: NAR 2025 Profile
The drivers behind buying a house in another state have evolved. Remote work has decoupled many professionals from a single metro area, making long-distance home buying a practical rather than aspirational move. According to the Tax Foundation's analysis of 2024 Census data, South Carolina experienced the greatest population growth from net inbound domestic migration (1.26%), followed by Idaho (0.83%), Delaware (0.79%), North Carolina (0.76%), and Tennessee (0.68%). The common thread: lower costs of living, favorable tax structures, and improving job markets.
Meanwhile, the states losing residents tell an equally clear story. New York, California, and Illinois continue to see outbound migration driven primarily by housing costs, property taxes, and general cost of living rather than any single political factor. For buyers in these states, relocating to another state often means their current home equity can purchase significantly more property in a destination market.
Remote Work Has Changed the Calculus for Long-Distance Home Buying
The shift toward remote and hybrid work arrangements has been the single largest accelerator of out-of-state buying. Professionals who once needed to live within commuting distance of a downtown office can now evaluate homes in entirely different states. This isn't just anecdotal. North American Van Lines' 2025 Migration Study found that mortgage rates dropping from 7% to 6.2% over the year, combined with flexible work arrangements, encouraged families to relocate to smaller, second-tier cities where homes are more affordable. Cities like Boise, Charlotte, Chattanooga, and Greenville have become relocation magnets precisely because they offer a high quality of life at a fraction of what coastal metros demand.
Relocating to Another State? Start With the Right Agent.
EffectiveAgents matches you with top-performing, vetted buyer's agents in your destination market based on actual transaction data, not ads.
Find a Top Agent in Your New StateFinancial Homework Before Buying a House in a Different State
The price tag on a home is only one piece of the financial picture when relocating to another state. Two homes listed at the same price in two different states can have radically different total costs of ownership once you factor in property taxes, state income taxes, insurance premiums, and everyday expenses. Doing this financial homework upfront prevents surprises that can turn a dream relocation into a budget nightmare.
Property Taxes Vary Dramatically Between States
According to NAHB's analysis of 2024 American Community Survey data, the average annual property tax bill in the United States is $4,271. But that national average masks enormous variation. New Jersey homeowners pay an average of $9,767 per year, while West Virginia homeowners pay $1,044. On a $350,000 home, the effective property tax rate in Illinois ($17.93 per $1,000 of home value) would generate a bill roughly six times larger than what you'd pay in Hawaii ($3.08 per $1,000).
| Cost Factor | High-Cost Example | Low-Cost Example | Annual Difference |
|---|---|---|---|
| Property Tax (on $350K home) | New Jersey: ~$8,610 | Alabama: ~$1,260 | $7,350 |
| State Income Tax (on $100K income) | California: ~$6,000+ | Texas/Florida: $0 | $6,000+ |
| Homeowners Insurance | Florida: ~$4,200/yr | Vermont: ~$900/yr | $3,300 |
| Median Home Price | California: ~$780K | West Virginia: ~$147K | $633,000 |
Insurance Costs Can Make or Break Your Budget
Homeowners insurance is another line item that swings wildly depending on where you buy. States prone to hurricanes, tornadoes, or wildfires carry significantly higher premiums. Florida, Louisiana, and Oklahoma consistently rank among the most expensive states for home insurance. If you're buying a house in another state in a coastal or flood-prone zone, request insurance quotes before you finalize your budget. In some Florida counties, insurance alone can exceed $5,000 per year, a cost that fundamentally changes your monthly payment calculation.
The Federal Housing Finance Agency (FHFA) publishes quarterly House Price Index data that tracks home value changes at the state, metro, and even ZIP code level. Reviewing FHFA data for your target area helps you understand whether prices have been appreciating, stagnating, or declining, context that matters when you're making a long-distance home buying decision in an unfamiliar market.
Relocation Cost Comparison Calculator
Compare estimated annual housing costs between your current location and your target state.
Current Location
Target Location
Annual Cost Comparison
The Step-by-Step Process for Remote Home Buying
Buying a house in another state follows the same general transaction flow as buying locally, but each step requires more deliberate planning because you can't simply drive across town to attend showings or sign documents. Here is the chronological process most successful long-distance home buyers follow.
Week 1-2: Define Your Target and Budget
Research destination markets using BLS cost-of-living data, FHFA home price indexes, and quality-of-life resources. Create a must-have vs. nice-to-have list for both the neighborhood (commute, schools, safety, amenities) and the home (size, lot, condition, age).
Week 2-3: Get Pre-Approved With a Licensed Lender
Your lender must be licensed in the state where you are buying. National lenders and many online mortgage companies are licensed in all 50 states, making this straightforward. Pre-approval clarifies your budget and signals to sellers that you are a serious buyer. According to NAR's 2025 data, the median down payment for first-time buyers is now 10%, the highest since 1989.
Week 3-4: Hire a Local Buyer's Agent
This is the single most important decision in a long-distance purchase. Your agent becomes your eyes, ears, and advocate on the ground. Look for agents with relocation experience, strong local market knowledge, and a track record of closing transactions for out-of-state buyers. Choosing the right Realtor is especially critical when you can't attend every showing in person.
Week 4-8: Search, Tour, and Evaluate Remotely
Use virtual 3D tours (Matterport, Zillow 3D), agent-led live video walkthroughs via FaceTime or Zoom, and Google Street View for neighborhood reconnaissance. Ask your agent to narrate details cameras miss: noise levels, odors, natural light quality, water pressure, and the condition of neighboring properties.
Week 6-10: Make an Offer and Negotiate
Your agent drafts the offer, which can be signed electronically. Include appropriate contingencies (inspection, appraisal, financing) to protect yourself as a remote buyer. Earnest money is typically 1-3% of the purchase price and can be wired to the title company's escrow account.
Week 8-12: Inspections, Appraisal, and Due Diligence
Hire a local home inspector. If you cannot attend in person, ask your agent to be present and request a detailed report with photos and video. The appraisal is ordered by your lender. Use this period to also research HOA rules, flood zone status, and any planned developments near the property.
Week 10-14: Closing
With remote online notarization now legal in 45 states, you may be able to close entirely from your current location. Your title company and lender will confirm whether a fully remote closing, hybrid closing, or in-person closing is required in your specific transaction.
Why Hiring a Local Agent Is Non-Negotiable for Long-Distance Home Buying
In any home purchase, a buyer's agent provides value. In a long-distance transaction, that value multiplies. Your agent is the person who physically walks through properties, identifies red flags that cameras can't capture, negotiates with local sellers and listing agents, and coordinates the dozens of professionals involved in closing: inspectors, appraisers, title companies, and attorneys.
What to Look for in a Relocation-Friendly Agent
Not every agent is equipped to handle out-of-state buyers. When interviewing potential agents, ask these specific questions:
- How many out-of-state or relocation buyers have you worked with in the past 12 months?
- What technology do you use for virtual showings (FaceTime, Zoom, Matterport)?
- Can you walk me through a recent transaction where the buyer never visited before making an offer?
- What's your process for helping remote buyers evaluate neighborhoods beyond what's on paper?
- Are you familiar with remote closing and e-signing procedures in this state?
- Can you recommend local inspectors, insurance agents, and attorneys you trust?
EffectiveAgents simplifies this search by matching you with top-performing buyer's agents based on actual negotiation performance data, not advertisements or referral fees. For a long-distance home buying transaction, partnering with a proven agent who knows the local market is your strongest competitive advantage.
Why Local Expertise Matters More When You're Far Away
Every state has different closing customs, disclosure requirements, and legal nuances. For example, some states require a real estate attorney at closing while others do not. Some states are "buyer beware" (caveat emptor) while others mandate extensive seller disclosures. Transfer taxes, recording fees, and title insurance costs vary significantly. A local agent who navigates these differences daily protects you from costly oversights that a general internet search might miss.
Virtual Showings, Sight-Unseen Offers, and Remote Evaluations
Technology has transformed the mechanics of buying a house in another state. According to NAR, 96% of buyers used online tools during their home search between 2024 and 2025, and virtual tours have become a standard expectation rather than a novelty. For out-of-state buyers, this technology isn't just convenient. It's essential.
Types of Remote Home Viewing
| Method | What It Is | Best For | Limitations |
|---|---|---|---|
| 3D Virtual Tour (Matterport) | Self-guided walkthrough using a digital model of the home | Initial screening of multiple properties quickly | Can't assess noise, smells, neighborhood feel, or minor condition issues |
| Agent-Led Video Tour | Live video call where your agent walks through the home in real time | Asking questions about specific rooms, checking details like water pressure or closet depth | Dependent on agent's phone quality and narration skills |
| Pre-Recorded Video | Agent records a detailed walkthrough you can rewatch | Reviewing homes across different time zones or sharing with a partner | Cannot ask real-time questions |
| Google Street View | Street-level imagery of the neighborhood | Evaluating curb appeal, street conditions, proximity to commercial areas | Imagery may be outdated by 1-3 years |
| In-Person Visit | You travel to the destination for showings | Final confirmation before closing; evaluating top 2-3 candidates | Expensive, time-consuming, requires trip planning |
Should You Buy Sight Unseen?
Buying a home entirely sight unseen means making an offer and potentially closing without ever physically visiting the property. While this has become more common since 2020, it carries real risk. If you do proceed without an in-person visit, protect yourself by including a thorough inspection contingency in your offer, requesting a sewer scope inspection, ordering a pest inspection, asking your agent to video-call you from the property at different times of day (to assess traffic, noise, and lighting), and reviewing flood maps and environmental hazard data for the specific parcel.
Need a Trusted Agent in an Unfamiliar Market?
EffectiveAgents has matched over 50,000 buyers and sellers with vetted, top-performing agents. Our data-driven matching ensures you get an agent who knows your destination market inside and out.
Get Matched With a Vetted AgentOut-of-State Mortgage Lending and Financing Your Move
Securing financing for a home purchase in another state is more straightforward than many buyers expect, but there are specific considerations that differ from a local purchase.
Lender Licensing Requirements
Your mortgage lender must be licensed in the state where the property is located, not where you currently live. National banks (Chase, Wells Fargo, Bank of America) and large online lenders (Rocket Mortgage, Better.com) are typically licensed in all 50 states. If you're working with a local credit union or smaller bank, verify their licensing before you begin the application process.
How Out-of-State Buying Affects Your Mortgage
Primary Residence
If you're relocating and the new home will be your primary residence, you qualify for standard mortgage rates and down payment requirements (as low as 3-3.5% with conventional or FHA loans). Lenders will want to see a job offer letter, transfer documentation, or proof of remote employment.
Second Home
Buying a vacation home or second property in another state typically requires a higher down payment (10-20%), slightly higher interest rates, and proof that you can carry two mortgage payments simultaneously.
Investment Property
If you're purchasing a rental property in another state, expect 15-25% down, higher rates, and stricter qualifying requirements including debt-to-income ratio scrutiny.
No Job Yet?
Buying without employment in the new state is possible but harder. You'll need to demonstrate alternative income sources, substantial savings, or a signed employment offer. VA and USDA loans have specific occupancy timeline requirements worth understanding.
According to NAR's 2025 Profile, the median down payment across all buyers was 19%, with first-time buyers at 10% and repeat buyers at 23%. All-cash purchases hit an all-time high of 26% of transactions, reflecting the advantage that equity-rich repeat buyers hold in today's competitive market. If you're selling a home in a high-value market and buying in a more affordable state, your equity position may allow for a much larger down payment or even an all-cash offer, which can be a significant competitive advantage.
Before you start shopping, understanding the mortgage pre-approval process and what lenders actually evaluate will save you time and prevent surprises during underwriting.
How to Evaluate Neighborhoods Remotely When Relocating to Another State
One of the hardest parts of buying a house in another state is assessing whether a neighborhood truly fits your lifestyle when you haven't spent time there. Photos and listings can't capture the feel of a community, the quality of local schools, or the noise from a nearby highway at rush hour. Here's how to do thorough remote neighborhood research.
Online Research Tools Worth Using
Crime Data
Check local police department websites, CrimeMapping.com, or NeighborhoodScout for crime statistics by address. Compare rates to national averages.
School Quality
GreatSchools.org provides ratings and reviews. Even if you don't have children, school quality impacts resale value significantly.
Cost of Living
The Bureau of Labor Statistics (BLS) Consumer Price Index and tools like BestPlaces.net allow side-by-side comparisons of everyday expenses between cities.
Community Insights
Local subreddits, Facebook groups, and Nextdoor can reveal resident perspectives on traffic, development, noise, and community culture that no data source captures.
Questions Your Agent Should Answer About the Neighborhood
A good buyer's agent functions as your local intelligence source. Ask about recent development projects (are they building a highway or big-box store nearby?), how long homes in the area typically sit on market, whether the neighborhood is trending up or down in value, what the commute looks like at different times of day, flood history, and the general demographics and culture of the area. An experienced agent who lives and works in the community will give you ground-truth answers that websites cannot.
Plan a Scouting Trip Before You Commit
If budget and schedule allow, plan a 2-3 day trip to your target area before submitting an offer. Use this visit strategically: tour your top 3-5 homes, drive the routes you'd use daily (commute, grocery store, school drop-off), visit at both morning and evening to understand traffic and noise patterns, eat at local restaurants, and walk through the neighborhoods on foot. This single trip can prevent a six-figure mistake and give you confidence in a decision you'll live with for years.
Remote Closing and E-Signing for an Out-of-State Purchase
One of the most significant developments for buyers purchasing a home in another state is the expansion of remote online notarization (RON). As of early 2025, 45 states and the District of Columbia have enacted permanent laws allowing real estate documents to be signed, notarized, and digitally stored entirely remotely. This means many buyers can close on a home in another state without traveling to the title company's office.
How Remote Closing Works
In a fully remote closing, you connect with a licensed notary via a secure video platform. Your identity is verified through multi-factor authentication, including government-issued ID analysis and knowledge-based questions. You review and electronically sign all closing documents while the notary witnesses via video. The entire session is recorded for legal record-keeping. Digital closings save lenders an average of $444 per loan and can shorten closing timelines by up to a week, according to industry data from the American Land Title Association.
States and Closing Methods Compared
| Closing Type | How It Works | Availability |
|---|---|---|
| Full RON (Remote Online Notarization) | All documents signed and notarized via secure video platform. No in-person meeting required. | 45 states + D.C. |
| Hybrid Closing | Some documents signed electronically, others require physical (wet-ink) signature. Notary may or may not need to be present in person. | Available in most states |
| In-Person Electronic (IPEN) | Documents are electronic but signer and notary must be physically in the same room. | California, Mississippi, and others |
| Traditional In-Person | Paper documents, wet-ink signatures, and a physical notary. The oldest method. | All 50 states |
Power of Attorney as a Backup Option
If your state doesn't allow RON or if your lender requires in-person signatures, you can execute a limited power of attorney (POA) allowing a trusted person (often your agent or attorney) to sign closing documents on your behalf. Discuss this option with your lender and title company early in the process, as not all lenders accept POA closings and the document itself needs to be prepared in advance.
Relocation Logistics for Moving Out of State
Closing on the home is only half the challenge. The physical move, transferring your life infrastructure, and establishing residency in a new state require their own detailed planning.
Moving Timeline and USPS Address Change
File your change of address with USPS at least two weeks before your move. Mail forwarding lasts 12 months for first-class mail. Book your moving company 4-8 weeks in advance, especially if you're moving during peak season (May through September). Get at least three quotes from licensed interstate movers and verify their USDOT numbers through the Federal Motor Carrier Safety Administration.
Post-Move Checklist for New State Residents
- Update your driver's license within 30-90 days (varies by state)
- Register your vehicle in the new state
- Register to vote in your new county
- Update your homeowners and auto insurance policies
- File a change of address with the IRS (Form 8822)
- Transfer or establish new utility accounts (electric, gas, water, internet)
- Find new healthcare providers and transfer medical records
- Update your address with banks, credit cards, and investment accounts
- Research and understand your new state's tax filing requirements
- If applicable, review any non-compete or state-specific employment law differences
Ready to Find Your Home in a New State?
EffectiveAgents connects you with top-performing agents based on real performance data. With over $2.1B in client savings and a 98% satisfaction rate, we take the guesswork out of finding the right agent in your destination market.
Find the Perfect Realtor Based on PerformanceFrequently Asked Questions About Buying a House in Another State
Can I get a mortgage for a home in a different state from where I currently live?
Yes. There is no legal restriction preventing you from obtaining a mortgage for a property in another state. The key requirement is that your lender must be licensed in the state where the property is located. National banks and most major online lenders are licensed in all 50 states. If you're working with a local credit union or community bank, verify their licensing. The mortgage application and approval process is essentially the same as a local purchase, though your lender may request additional documentation such as a job offer letter or proof of remote work if you're relocating.
Do I need to visit a home in person before buying it in another state?
There is no legal requirement to visit a home before purchasing it. Many buyers successfully purchase homes sight unseen using virtual tours, agent-led video walkthroughs, and detailed inspection reports. However, an in-person visit is strongly recommended whenever possible. Virtual tools cannot fully convey noise levels, neighborhood feel, odors, or subtle condition issues. If you cannot visit before making an offer, try to schedule a visit during the inspection period or before your closing date. One flight is a small investment compared to the purchase price of a home.
How do I evaluate a neighborhood in another state without being there?
Use a combination of data tools and human intelligence. Check crime statistics on local police department websites and CrimeMapping.com. Review school ratings on GreatSchools.org. Explore the neighborhood visually using Google Street View and Google Earth. Join local subreddits and Facebook groups for resident perspectives. Use the BLS Consumer Price Index data and BestPlaces.net for cost-of-living comparisons. Most importantly, rely on your local buyer's agent for on-the-ground insights about traffic patterns, development plans, and community dynamics that data tools cannot capture.
Can I close on a house remotely without traveling to the other state?
In most cases, yes. As of 2025, 45 states and the District of Columbia have enacted permanent remote online notarization (RON) laws that allow real estate closing documents to be signed and notarized via secure video conference. However, not all lenders or title companies support RON, so confirm availability early in your transaction. In states that don't allow RON for real estate (currently California and Mississippi use in-person electronic notarization), you may need to attend in person or execute a limited power of attorney to authorize someone to sign on your behalf.
What happens if I'm buying in another state but haven't found a job there yet?
Buying without current employment in the destination state is possible but requires careful preparation. Lenders need to verify your ability to repay the loan, so you'll need to demonstrate income stability through alternative sources: a signed employment offer letter with a start date, documented remote work arrangement with your current employer, substantial savings or investment income, or income from a spouse or co-borrower. Self-employed buyers should have at least two years of tax returns showing consistent income. Some loan programs, like VA loans, have specific occupancy requirements that may need to be met within 60 days of closing.
How much does it cost to move to another state?
Interstate moving costs depend on distance, the volume of belongings, and the time of year. For a typical 2-3 bedroom home, a full-service long-distance move ranges from $3,000 to $7,500 for distances under 1,000 miles and $5,000 to $12,000+ for cross-country moves. Peak season (June through August) pricing can be 20-30% higher than off-peak months. Additional costs to budget for include packing materials, temporary storage, vehicle transport if driving isn't feasible, temporary housing if there's a gap between closing dates, and utility connection fees. Get at least three written quotes from licensed interstate movers and verify their USDOT registration.
Should I sell my current home before buying in another state?
This depends on your financial situation. Selling first simplifies financing by giving you clear proceeds for a down payment and eliminating the risk of carrying two mortgages. However, it may require temporary housing in between closings. Buying first allows you to move directly but means potentially managing two mortgage payments. A bridge loan can help cover the gap, but adds cost. Some buyers negotiate a rent-back arrangement with the buyer of their current home, allowing them to stay temporarily after selling. Discuss your specific situation with your lender to understand what you qualify for if you need to carry both loans simultaneously. EffectiveAgents' guide on buying and selling a home at the same time covers the full range of strategies for managing simultaneous transactions.
What are the tax implications of moving to a different state?
Tax implications vary significantly. If you sell your current home at a profit, you may qualify for the capital gains exclusion ($250,000 for single filers, $500,000 for married filing jointly) if the home was your primary residence for at least two of the past five years. Beyond the sale, your new state's income tax structure will affect your ongoing finances. Nine states have no income tax on wages, while others like California and New York have top marginal rates above 10%. Property tax rates also vary enormously. The Tax Foundation's State Tax Competitiveness Index is a useful resource for comparing overall state tax environments. Consult a tax professional, especially if you'll earn income in both states during the year you move, as you may need to file returns in both.
