How to Sell a House from Out of State: Long-Distance Guide

Another option is to work with a company that buys houses for cash in the area. While you will likely receive a lower offer than if you listed, you also eliminate the need for home preparations and repeated showings that can be difficult to arrange from afar.

Let’s take a close look at the process of selling a house from out of state, as well as your options.

Why sell from out-of-state?

30% of people who recently purchased or sold a home moved to a different state from their previous residence, according to HomeLight’s 2022 Buyer and Seller Insights Survey. The reasons are varied, but there are some common threads.

Work relocation

Top Florida real estate agent Dave Gaudreau says one of the more common reasons for an out-of-state sale is a corporate relocation. In 2023, almost 11% of movers relocated for work or because of a job transfer.

For those employees who still need to be tied to one location, your employer may ask you to relocate, often without much notice. That’s especially common among members of the military, Gaudreau says.

Foreclosure

Sometimes these are classified as REOs, or real estate-owned properties, because they’re now owned by a bank, government agency, or other lender.

As of September 2023, there were just over 37,00 homes with foreclosure filings, an 18% spike from September 2022 and a return to pre-pandemic numbers, according to the national property data warehouse ATTOM Data Solutions.

Probate

Sometimes a property has to go through probate to be sold. The term probate refers to the legal process through which the loved one’s will is reviewed, and a representative or executor is appointed to administer the will and distribute any assets — or, in some instances, to make arrangements and disbursements and distributions from the estate in the absence of a will.

Probate recognizes whether a will is valid and appoints an executor or personal representative to administer the estate and distribute assets, including any real estate assets. You don’t have to live near the deceased to be named an executor or estate representative.

Investment property

Individual investors own roughly 70% of the rental housing market. An investor may want to divest their property completely or roll the profit into another investment. In this case, an owner may never have been to the home, or it’s been a while since they’ve seen it, Adams says.

“There’s less familiarity with the property and more of an opportunity for the real estate agent to step in and bring extra value to that relationship,” says Adams.

Not sure you want to list? Get a cash offer.

During what can be a months-long process, some sellers may find the process of listing and managing a property from a distance to be overwhelming. While you’re trying to crush it in a new job or make family dinners, you’re also responding to texts and phone calls from the stager or approving the details for a home that might as well be on another planet.

To reduce the typical headaches of selling a home long distance, consider requesting an offer from a house-buying company that purchases homes in the area.

I’m out of state. Is it worth selling to a cash buyer?

While selling to a We Buy Houses company offers several conveniences, house-buying businesses typically pay less than market value for the homes they purchase, and sometimes significantly so.

These companies can also provide a quick and flexible closing, reduce or eliminate the need for repairs, and in many cases will cover all of a seller’s closing costs. So it’s all about weighing the trade-offs and determining what’s best for your situation.

If this is an option you’d like to explore further, consider HomeLight’s Simple Sale platform, which provides all-cash offers for homes in almost any condition nationwide. Sellers input details about their home and selling timeline on our website. No staging. No repeated showings. No open houses.

In as little as 24 hours, you could have a no-obligation cash offer in your email inbox with the ability to close in as few as 10 days. By contrast, closings involving a mortgage take an average of 45 days as of October 2023.

But my out-of-state property is in great condition!

Then a traditional listing may be a better fit — or you could consider working with an iBuyer. iBuyer companies offer many of the same conveniences of other house-buying operations, but they also leverage algorithmic technology, otherwise known as automated valuation models (or AVMs), to make a near-instant offer on your home and provide a user-friendly, mostly online home sale experience. iBuyers tend to look for better-quality homes and offer much closer to market value, typically in the 90% range — and sometimes more, particularly in a hot real estate market.

What real estate agents do when a seller is out of state

Maybe you’re hesitant to accept a cash offer or are still on the fence. Perhaps your top priority is to maximize the value of the offer.

Let’s review another approach you could take when selling a house from out of state: hiring a top-rated real estate agent to coordinate the transaction and lighten your load.

If you have a real estate agent who knows how to sell a house with an out-of-state owner, you won’t need to worry about whether you should visit the property every step of the way.

Adams, a top Phoenix real estate agent, says he never discourages a seller who lives out of state from visiting a property to understand better its value and what it needs to sell. But such travel isn’t always feasible or necessary. A trusted local real estate agent can field these responsibilities:

1. Secure the property

The agent can hire a locksmith to rekey the property to ensure no one else has access.

“Sometimes the neighbor has a key from whoever lived there, or there are friends or relatives who have keys,” Adams says. The agent can also install two lockboxes, one for showings to track who enters and leaves and a coded one for contractors (or the homeowner, should they want to visit and not ask the agent for access).

2. Document the property’s condition

Even if the home isn’t ready to list yet, your agent can capture a detailed set of photos showing the home’s condition: street scenes, shots of the roof and landscaping, photos of major appliances such as the air conditioner, and multiple views of each room.

This way, you’ll know about anything that impacts the value or needs to be repaired immediately. If your home sale relates to a probate situation, the photos are also essential for a probate attorney’s report for the court.

3. Assist with hiring contractors

An agent has the local knowledge to take care of simple tasks such as turning on utilities in a vacant home and knowing professionals who can perform repairs and keep it in show-ready shape, such as a cleaning service and a pool cleaner.

You can defer to the agent’s advice when hiring someone or ask the agent to provide bids from multiple vendors so you can choose the one with whom you’re most comfortable.

4. Keep tabs on the property

A local agent can keep an eye on the home, providing peace of mind. Jennifer Murtland, a top-selling real estate agent in Cincinnati, Ohio, and her colleagues regularly check properties for sellers who live out of town. On one such occasion, she found that a water heater had burst earlier in the day. “I was able to clean it up and turn it off, but if I hadn’t gone, mold would have been everywhere,” she says.

5. Price the property, respecting your budget and time frame

Adams says he’ll give out-of-state owners two different valuation ranges, one for an as-is sale and another with any renovations to make the home competitive with the local market. He’ll also offer an estimated cost of the upgrades.

“If they’re in no hurry, I always like to price high and then reduce it over time,” he adds. “I never want to be in a situation where we have an offer the first day, and everyone’s wondering, ‘Oh, gosh, did we not price high enough?’” Plus, each reduction keeps the property at the top of the multiple listing service (MLS). “It stays top of the list, top of mind, and we immediately see traffic at those listings … because of the way the MLS works.”

6. Manage marketing

In addition to the MLS, your local agent will coordinate showings and marketing efforts. These might involve social media, online advertising, and open houses. If you’d like to be available to answer questions during an open house but cannot travel, your agent might arrange a “virtual open house,” or a live-streamed guided tour. These can be conducted on almost any social media platform like Facebook Live or Instagram and later posted on YouTube.

7. Set up a 3D or virtual tour

According to the National Association of Realtors®, 96% of buyers found their home online. And to make your home stick out today you need more than just a good listing and great photos. Your agent should be able to set up a 3D or virtual tour that opens up your property to a larger market.

It may also help your property sell faster, especially if a buyer can’t attend an in-person showing. According to the NAR, 9 out of 10 buyers believe photos are useful. After all, just like you’re selling from out of state, some buyers may be buying from out of state.

9. Apprise you of property taxes

Real estate property taxes vary from state to state, amount, and when you pay them. If the taxes where you live are $3,000, you might be shocked to learn the taxes on the house you’ve sold out of state are, say, $12,000, with payment due at the closing table. Your agent can break down in advance what the sales taxes will be and when you’ll have to pay them. (It’s also wise to consult with an accountant.)

9. Keep your timeline intact

In any real estate sale, several issues could derail or delay your timeline. Your agent can be your best advocate, ensuring that whatever repairs you get done don’t fall behind and that your sale progresses on time. Being so far away from your property likely means you’ll have less flexibility than being there in person. Your agent can make up for that.

10. Close the deal

Depending on your preference and where you live, your agent can coordinate with you on how best to sign the closing documents. Some title companies can act as a notary and email documents for you to sign. You can have them notarized at your end and returned to them electronically or via overnight delivery. Companies such as Notarize can provide notarization online, working with a notary via webcam.

Your agent can also coordinate a remote closing if your state permits it. All signatures can be completed electronically, through DocuSign or a web portal, and you can attend the closing via phone or webcam if needed.

Other tips for selling your house from out-of-state

Let’s look at additional things to keep in mind as you complete your transaction.

Look into remote notarization

Historically, one of the biggest obstacles to selling a house from out of state has been that certain documents must be notarized in person as part of the sale.

Notarization prevents fraud and formally certifies a document’s authenticity. Sellers may be asked to sign the affidavit of title and other documentation in the presence of witnesses and a notary. A remote notarization may be possible, depending on where you live. Remote Online Notarization (RON) rose to prominence during the height of the COVID-19 pandemic and has managed to stick around.

While the process will vary state by state and software by software, sellers can expect to see some or all of the following protocols come up during the remote notarization process:

• You’ll meet via webcam.
• You may need to use a specific remote notarization platform.
• You’ll be asked to provide key identifying information about yourself.
• You’ll need to send in physical documents or upload them digitally.

The National Notary Association (NNA) is tracking frequent changes to remote notarization legalization across state lines — and you can see where your state currently stands by viewing NNA’s map. Sellers should also consult with their agents to see if RON is an option in their market.

Gather a strong team

Your real estate agent will be your best friend during your transaction. But to make sure your sale goes off without a hitch, it’s helpful to assemble a team of professionals including:

• A handyperson: You may not be doing any major renovations, but having someone to change out light fixtures, patch up holes in the wall, or fix a broken door handle can be a lifesaver and give buyers a strong first impression that the home is well-maintained.
• Landscaper: Buyers will pay an average of 7% more for a house with great curb appeal than one with a neglected exterior. Hire someone to mow the lawn, pull weeds, and apply fertilizer to give buyers the green carpet upon entering.
• Home inspector: This is optional, but a home inspector can complete a pre-sale inspection to identify any issues ahead of time, giving you time to address needed repairs without the pressure of already being under contract.
• Real estate attorney: Some states require a real estate attorney to be involved in the transaction, and some sellers opt to hire one regardless to check paperwork and handle any legal issues.
• Accountant: It’s helpful to keep your tax advisor informed of your plans to sell in case any tax events are triggered.

Ask your real estate agent for reputable contacts if you’re unsure who to hire for these roles.

Disclose what’s required for the location where the property is located

Every state has its own rules about what sellers are required to disclose as part of the sale to buyers. Generally, a seller must share any known issues with the home that could impact its safety, livable condition, or resale value.

Examples include a past flooding event, storm damage, or a house fire. However, if you’ve never lived in the home and are unfamiliar with it, the expectation for disclosures will likely differ.

Consult with your real estate agent and if necessary, a licensed attorney, to ensure you’ve filled out the correct forms and made necessary disclosures to the best of your ability.

How to find a real estate agent who can help

When selling a house from out of state, it’s vital to work with a real estate agent who’s suitable for the job. HomeLight makes it easy to connect with top real estate agents in your area with the right expertise. We analyze over 27 million transactions and thousands of reviews and send around two to three matches to your email.

Once you receive your agent recommendations, you’ll have the chance to interview your real estate agent matches to determine who you want to hire. When selling out of state, you might inquire:

• Have you ever worked with out-of-state sellers?
• What’s your experience with selling REO property? Probate property? Investment property?
• What value or services can you bring to help me stay abreast of what’s happening at the property from afar?
• What tools do you use to communicate with out-of-town sellers?
• What steps do you take to attract an offer as quickly as possible?

Although selling a house long-distance might be unusual for you, a seasoned real estate agent likely has done this before and can be a valuable resource.

“There’s a bit more of a challenge when you’re calling from out of state and trying to identify someone who has these skills,” Adams says, but the confidence you’ll have after choosing the right agent is well worth the research.

Garrett Callahan contributed to this article.

Header Image Source: (Jesse Roberts / Unsplash)