Yes, however the property cannot be a refurbished building so that it can appraise for the price (valuation).
Buying a home is becoming increasingly common these days. It has been standard practice for some time in the real estate world for sellers to skip the home closing by pre-signing paperwork and having sale proceeds wired directly to a bank account, but now the entire process can be done by buyers as well as sellers.
In more normal times, people who buy foreign properties often do so to purchase a second home or to rent out the house. Typically, they are from out of state and have jobs and other obligations that prevent them from spending a lot of time on the home-buying process.
Real estate investors may also choose to buy homes remotely. Most real estate investors follow the 1% rule, which states that the monthly rent earned on a property should exceed that property’s monthly mortgage payment, so the investor at least breaks even on the property. It’s easier to find properties that follow the 1% rule in certain markets, which may be located at significant location. As a result, buying a house can be an attractive and time-saving option.
In some cases, you may have to depend on us as your real estate agent to handle nearly the entire home-buying process, so it’s critical that you take the time and make the effort to find a good fit. Home buying involves a lot of moving parts. For us at Luvanex It’s important we find a good personality match between the investor and our agents.
An interview is helpful (whether by phone or video), and it’s always a good idea to get references to see what other buyers have to say.
The attorneys still require physical signatures so we will work with the closing attorney and list out the necessary documents to you ahead of the closing. Then we can go to the closing table with the closing documents with or without the investor and the funds are wired to complete the transaction.
The Bottom Line
Buying a home remotely can be a good option for out-of-state real estate investors. In many ways, the process is the same as buying a house in person; however, you will depend even more on us to find the right home, be present for the inspections, guide you through the paperwork, and attend the closing.
As such, finding the right agent like Luvanex, with years of experience in real estate investment is one of the most important steps you can take when buying a house in the United States.