There are dozens of reasons why someone might choose to buy a home in another state. Maybe they are investing in a rental property to gain passive income, or they are considering moving. The explanations may be complicated, but the process of buying out-of-state has become easier than ever. If you have managed to score an out-of-state client, we recommend utilizing these tips to secure a successful transaction.
Tips for Realtors Working with Out-of-State Home Buyers
Schedule an In-Depth Consultation
The first step in securing any client is an in-depth consultation. Since your home buyers are out-of-state, you will want to work out a time for a phone or video chat that considers both your schedules and time zones. During your consultation, we recommend asking the following:
- Why are they choosing to buy in your area rather than their home state?
- What is their timeline like for moving/investing?
- What is their budget range, and where will they comfortably max out?
- What are their must-have features in their new home/neighborhood?
- What are their “would love to have but aren’t a must” features in their new home/neighborhood?
- Are they willing to plan a trip out to perform home tours?
- What is their preferred communication method?
Make Sure They Get Preapproved
If your home buyers have dipped their toes into the home-buying pool, you will want to ensure they are pre-approved before researching potential homes for them. Pre-approvals provide realtors with invaluable information on budgeting so you can appropriately narrow the search. You certainly don’t want to propose a $900k house if they can only afford $400k. To ensure they take this critical step, we recommend including in your agreement that they must show proof of recent preapproval in order for you to begin the search process.
Plan Regular Check-Ins to Discuss Progress
It can be easy to get off track when working with clients who are out-of-state. You don’t want to end up sending them a bunch of potential house listings that don’t excite them. Therefore, it is wise to have regularly scheduled check-ins to analyze what they think so far, which homes have tickled their fancy, if any of their preferences have changed, etc. By maintaining transparent and frequent communication, you will be able to provide them with the most efficient service.
Encourage a Trip for House Tours
For out-of-state home buyers, we highly recommend encouraging them to come to visit the area and perform in-person home tours. Even with the extraordinary technology we have today, pictures and videos don’t offer the same influence as being physically present in the home.
We suggest working with your home buyers on booking a trip that will work best for the homes they want to tour, their schedule, and your schedule. They will likely only be in town for two to three days, but you don’t want to overwhelm them and scare them off. We suggest scheduling two to four house tours each day so they have time to tour the area during their downtime.
If you want to go the extra mile, we recommend making them a Welcome-to-the-Area packet with options for accommodation, transportation, and sites they must see. We recommend advising your clients to skip out on renting a car; instead, suggest they use airport transportation services to get them to and from the airport and then hire a private car service to shuttle them around. That way, you never have to worry about them getting lost or in an accident; instead, they will be transported by a local professional driver.
They May Need More Than One Trip
The chances of your home buyers finding the perfect house in two or three days are unlikely. We advise that you caution your home buyers that they may need to make more than one trip. If your buyers are unwilling or unable to take a trip out to perform in-person house tours, you can offer them virtual tours and high-quality photos. This is an excellent option for potential home buyers to narrow their home preferences and choices, especially if they are located across the country.
Have Them Ready to do the Final Steps
Getting preapproved and coming to town for a visit is a big step, and you can help your clients even further by being prepared with recommendations as they move through the process. Remember, your client most likely has few to no connections in town. Therefore, they need suggestions for inspectors, lenders, moving companies, contractors, and more. We suggest having a packet at-the-ready with all your top suggestions that you can hand over should they need it.
Additionally, work with your client to determine how the final paperwork will be signed. Will they fly in and sign in-person, or will you need to do it electronically? There is typically a limited window to get these final signatures in place, so having a plan prior to putting out offers will be immensely helpful!
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