Buying a Home When Relocating: A Step-by-Step Guide for Out-of-Town Buyers

You got the job offer. You're moving across the country. And now you need a place to live in a city you might have visited once — or never.

Buying a home during a relocation is one of the most stressful real estate scenarios. You're making a massive financial decision with limited local knowledge, tight timelines, and the chaos of a life transition happening simultaneously.

Here's how to do it without making expensive mistakes.

The First Decision: Buy Now or Rent First?

This is the most important decision you'll make, and most relocation guides get it wrong by defaulting to "buy immediately."

Rent First (6-12 Months) If:

• You've never lived in the area before
• You don't know the neighborhoods well
• Your timeline is tight (less than 60 days to move)
• The local market is competitive (multiple offers, limited inventory)
• You have a home to sell in your current city
• You're unsure about the job or whether the move is permanent

Buy Immediately If:

• You know the area well (grew up there, visited extensively, have family nearby)
• The market favors buyers (lots of inventory, homes sitting for 30+ days)
• Your employer is covering relocation costs including temporary housing
• You've already sold your current home
• Mortgage rates are favorable and you want to lock in
• You have enough savings to handle surprises

The honest take: Renting first is almost always the safer play. Six months of rent ($8,000-$15,000 depending on market) is cheap insurance against buying in the wrong neighborhood, overpaying due to urgency, or discovering you hate the commute. It feels like wasted money, but a bad purchase costs 10x more.

Step 1: Research the Market Before You Visit

Before you set foot in the new city, do your homework.

Neighborhood Research

• Google Maps Street View: Walk the streets virtually. Look at housing stock, commercial areas, and overall condition.
• Crime mapping: Use CrimeMapping.com, SpotCrime, or your local police department's data portal. Look at trends, not just raw numbers.
• School ratings: Even if you don't have kids, school quality affects resale value. Check GreatSchools.org and Niche.com.
• Commute testing: Google Maps lets you check drive times at specific times of day. A "20-minute commute" at 2 PM might be 55 minutes at 8 AM.
• Reddit and local forums: Search r/[cityname] for "moving to" threads. Locals give brutally honest neighborhood breakdowns.
• Cost of living comparison: Use tools like BestPlaces.net or NerdWallet to compare costs between your current and future city. A $100,000 salary in San Francisco is equivalent to about $50,000 in Raleigh.

Market Conditions

• Median home prices by neighborhood: Zillow, Redfin, and Realtor.com all provide this data.
• Days on market: Under 15 = very competitive. Over 30 = more buyer-friendly.
• Price trends: Are prices rising, flat, or declining? This affects your urgency and negotiating power.
• Inventory levels: Low inventory means fewer choices and more competition. High inventory gives you leverage.

Tax and Regulatory Differences

Moving between states can dramatically change your financial picture:

• Property tax rates: Range from 0.27% (Hawaii) to 2.23% (New Jersey). On a $400,000 home, that's the difference between $1,080 and $8,920 per year.
• State income tax: Moving from Texas (0%) to California (up to 13.3%) or vice versa changes your take-home pay significantly.
• Homestead exemptions: Many states offer property tax reductions for primary residences. Check eligibility.
• Transfer taxes: Some states/cities charge 1-3% in transfer taxes at closing. Factor this into your budget.

Step 2: Build Your Remote Team

You cannot do this alone from 1,000 miles away. Your team is everything.

Buyer's Agent

This is the most critical hire. You need an agent who:

• Knows the area intimately. Not just listings — neighborhoods, flood zones, school boundaries, planned developments, traffic patterns.
• Is comfortable with remote buyers. They should proactively send video walkthroughs, neighborhood tours, and detailed notes — not just links to listings.
• Communicates aggressively. When you're in a different time zone, you need an agent who calls, texts, and emails without being chased.
• Has no conflict of interest. Avoid agents who also represent the seller (dual agency). You need someone purely in your corner.

How to find one: Ask your current agent for a referral, check reviews on Zillow/Realtor.com, or use a platform like HomeLight. Interview 3 agents by video call. Ask specifically about their experience with relocation buyers.

Lender

Get pre-approved before you start looking. When buying remotely:

• Use a lender licensed in your destination state. Mortgage licensing is state-specific.
• National lenders (loan officers at big banks, online lenders) can handle cross-state purchases more easily than local credit unions.
• Get your pre-approval letter early. In competitive markets, sellers won't consider offers without one.
• Understand rate locks. If your timeline is 45-60 days, make sure your rate lock covers the full period. Extensions cost money.

Home Inspector

Your agent can recommend inspectors, but independently verify their qualifications:

• Look for ASHI (American Society of Home Inspectors) or InterNACHI certification
• Read reviews from other buyers
• Ask for a sample report to see how thorough they are
• Make sure they'll do a video walkthrough of findings with you if you can't be there in person

Step 3: The Scouting Trip

If at all possible, visit before buying. One well-planned trip can prevent years of regret.

Maximize a 3-4 Day Trip

Day 1: Neighborhoods

• Drive every target neighborhood at different times (morning commute, evening, weekend)
• Eat at local restaurants, visit grocery stores, walk the streets
• Note noise levels, traffic, parking, and general feel
• Talk to people. Coffee shop baristas and bartenders know things Zillow doesn't.

Day 2-3: Property Tours

• Have your agent schedule 6-10 showings across your top 2-3 neighborhoods
• Don't try to see 15+ homes — you'll blur them together
• Take video of every property (not just photos)
• Note things cameras miss: smells, noise from neighbors/roads, natural light, storage

Day 4: Logistics

• Visit your future workplace and test the commute
• Check out gyms, parks, medical facilities, and daily errand routes
• Meet with a local lender if you haven't finalized financing
• Drive the neighborhoods one more time with fresh eyes

If You Absolutely Can't Visit

It's not ideal, but people buy homes remotely every day. Here's how to mitigate the risk:

• Video tours: Your agent does live video walkthroughs via FaceTime or Zoom. You direct them — "open that closet," "show me the water heater," "go outside and show me the neighbor's yard."
• 3D tours and floor plans: Matterport tours give you a sense of space that photos can't.
• Inspection report: Pay for a thorough inspection before committing. It's your eyes on the ground.
• Google Earth: Check the lot, surroundings, and recent satellite imagery.
• Appraisal: The lender's appraisal provides an independent value opinion. Pay attention to the comparable sales they use.

Step 4: Timing the Purchase With Your Move

The Ideal Timeline

When Timelines Collide

Real life rarely follows a neat schedule. Common complications:

Your current home hasn't sold yet:

• Bridge loans cover the gap between buying and selling. They're expensive (8-10% interest) but short-term.
• HELOC on your current home can fund the down payment temporarily.
• Some buyers make an offer contingent on selling their current home — but in competitive markets, this weakens your offer significantly.
• Best option: sell first, rent temporarily, then buy with clean finances.

Your start date is in 3 weeks:

• Rent furnished housing (Airbnb, corporate housing, extended-stay hotels) for 1-3 months.
• Buy after you've started work and had time to learn the area.
• Your employer may cover temporary housing — ask.

You're buying before you have a local job:

• Lenders need to see employment. A signed offer letter from your new employer usually satisfies this requirement.
• If you're self-employed or remote, you'll need 2 years of tax returns showing consistent income.
• Some lenders are stricter about employment verification for out-of-state buyers. Get pre-approved early to identify issues.

Step 5: Closing Remotely

You don't always need to be physically present at closing.

Remote Closing Options

• Remote online notarization (RON): Available in most states. You sign documents via video call with an online notary. Check if your state and lender allow it.
• Power of attorney: You can authorize someone (attorney, trusted person) to sign closing documents on your behalf. The lender must approve this in advance.
• Mail-away closing: Documents are mailed to you, you sign before a local notary, and send them back. Adds a few days to the timeline.
• Fly in for closing: If it's logistically possible, being there in person is still the simplest option. Combine it with a final walkthrough.

Final Walkthrough

Even if you're closing remotely, arrange a final walkthrough. Your agent can do it via video if you can't be there. Verify:

• Negotiated repairs were completed
• All agreed-upon fixtures and appliances are present
• No new damage since inspection
• Utilities are functional

Relocation Benefits: Use Everything Available

If your employer is relocating you, understand your benefits package thoroughly.

Common Relocation Benefits

• Lump sum: A flat amount ($5,000-$25,000+) to cover all moving expenses. You manage it.
• Managed relocation: The company hires a relocation firm to handle logistics. More support, less flexibility.
• Home sale assistance: Some employers buy your current home at appraised value if it doesn't sell within a set period.
• Temporary housing: 30-90 days of corporate housing or hotel stay.
• Closing cost reimbursement: Some employers cover buyer closing costs (2-5% of purchase price).
• House-hunting trips: Paid trips to the new city to look at homes.
• Tax gross-up: Relocation benefits are taxable income. Some employers "gross up" the payment to cover the tax hit.

Negotiate these before accepting the job offer. Relocation benefits are often more flexible than salary.

Tax Implications

Since the 2017 Tax Cuts and Jobs Act, moving expenses are no longer deductible for most workers (military excepted). Employer-paid relocation benefits are taxable as income. Budget for the tax impact — a $15,000 relocation package could add $3,000-$5,000 to your tax bill.

Common Relocation Buying Mistakes

1. Buying too fast. Urgency leads to overpaying, wrong neighborhood, or missed defects. Renting first is almost always worth the cost.

2. Relying entirely on online research. Neighborhoods feel different in person. Crime data and school ratings don't capture noise levels, neighbor dynamics, or weekend traffic.

3. Ignoring climate and geography. Moving from Arizona to Seattle? You need to understand what 8 months of grey skies feels like. Moving to Houston? Understand flood zones. These affect your daily life and your property value.

4. Not accounting for cost-of-living differences. A $150,000 salary in New York is not the same as $150,000 in Nashville. Adjust your home budget for local costs, not your current ones.

5. Skipping the inspection. Tight timelines tempt buyers to waive inspections. Don't. A $500 inspection can save you $50,000 in hidden problems.

6. Choosing the wrong agent. An agent who doesn't know the area or doesn't understand remote buyer needs will cost you — in money, time, and stress.

Frequently Asked Questions

Should I buy a house before I move to a new city?

Only if you know the area well. If you're unfamiliar with the city, rent for 6-12 months first. You'll learn which neighborhoods suit you, what the commute is really like, and whether the move is permanent. The cost of renting is far less than the cost of buying in the wrong place.

Can I get a mortgage in a state I don't live in yet?

Yes. As long as the property will be your primary residence and you have a job (or signed offer letter) in the new location, lenders will approve the loan. Make sure your lender is licensed in the destination state.

How do I find a good real estate agent in a city I've never been to?

Ask for referrals from your current agent, friends, or colleagues who live there. Check online reviews. Interview 3 agents by video. Ask specifically about their experience with relocation buyers and how they handle remote communication. The best indicator is how responsive they are during the interview process — if they're slow now, they'll be slower when it matters.

Should I sell my current home before buying the new one?

Ideally, yes. Selling first gives you a clean financial picture, eliminates the risk of carrying two mortgages, and strengthens your offer (no sale contingency). The trade-off is needing temporary housing in the new city. If your employer covers temporary housing, selling first is a no-brainer.

How long should I rent before buying in a new city?

Six to twelve months is the sweet spot. Six months gives you enough time to learn the neighborhoods, settle into your job, and search without pressure. Twelve months gives you a full seasonal cycle — you'll experience summer heat, winter weather, holiday traffic, and school-year dynamics.

What if my company is only paying for my move but not my home purchase?

Focus on the move logistics first. Use any lump sum wisely — save a portion for your eventual down payment. Rent affordable temporary housing, learn the area, and buy when you're ready, not when you're rushed. The lack of homebuying assistance doesn't mean you can't buy — it just means you should do it on your own timeline.

The Bottom Line

Relocating and buying a home simultaneously is possible, but it demands more planning, a better team, and more honest self-assessment than a local purchase. The biggest risk isn't financial — it's rushing a decision you'll live with for years because the moving truck is already booked.

Take your time if you can. Rent if you're uncertain. And when you do buy, make sure you've seen the neighborhood in person, at different times of day, before you commit.

Your new city will wait. The right house will be there when you're ready to find it.

Related Articles

• Property Taxes Explained: How They Work and How to Reduce Them
• How to Challenge Your Property Tax Assessment (And Win)
• Down Payment Assistance