Purchasing property in the United States can be exciting, whether you're a first-time homebuyer, a seasoned investor, or a foreign national looking to own a more tangible slice of the American dream. That said, navigating the complex world of American real estate can also be nerve-wracking, with countless factors to consider and multiple decisions to make along the way.

To help you stay organized and informed throughout the process, we've assembled this comprehensive checklist. Read on and ensure that you make informed, confident decisions while also avoiding common missteps.

✅ Get a feel for the US real estate landscape

Before you start packing your bags and booking your flight to the USA, take some time to familiarize yourself with the real estate landscape there. 

Do your homework and look into the different areas that pique your interest. Get a feel for the local property values, rental rates, and investment opportunities. Keep in mind that what might be a seller's market in one city could be a buyer's paradise in another, so it pays to cast a wide net! This isn’t meant to be a comprehensive analysis just yet – your aim is to just get a general feel for the market at this point.

Of course, navigating the complexities of the American real estate market can be a daunting task, especially if you're new to the game. This is where a knowledgeable real estate agent can be a game-changer. Of course, this consultation is unlikely to come without a price, which brings us to our next point.

✅ Consider any bureaucratic hurdles

Consider setting up an American bank account for easier transaction handling and to establish a financial presence in the country.

Additionally, understand any visa requirements if you plan to visit or stay in the United States. Remember: owning property does not automatically grant you the right to reside in the country, so it may be with consulting with an immigration attorney for advice on this matter.

✅ Understand the basic costs before and after the purchase

It’s crucial to make sure you assess your budget and real estate costs in a comprehensive way.

Take into account the down payment; this is an upfront portion of the purchase price that you pay out of pocket (the remaining balance is typically covered by a mortgage loan). The amount of your down payment can vary depending on the type of loan you choose and your financial situation, but it generally ranges from 3% to 20% of the total purchase price.

Closing costs are the various fees and expenses associated with finalizing your property purchase. These can vary depending on your location, property type, and loan terms, but they typically range from 2% to 5% of the purchase price itself. Common costs include: mortgage origination fees, appraisal and inspection fees, title search and insurance fees, property taxes and homeowners insurance premiums, and escrow and attorney fees.

Consider also the cost of ongoing maintenance. This can encompass the cost of routine tasks like landscaping, cleaning, and minor repairs, as well as larger expenses like replacing appliances, updating systems, and addressing structural issues. These costs can vary widely depending on the age, condition, and location of your property, but setting aside an annual budget of 1% to 4% of your home's value is a good rule of thumb.

The amount of your property taxes can likewise vary, but they typically range from 0.5% to 2% of your home's assessed value per year.

Finally, most mortgage lenders require borrowers to maintain a minimum level of insurance coverage.

✅ Know the roles of the homebuying dream team

Having the right professionals in your corner can make all the difference when shooting for a successful purchase. To that end, there are a few folks you may want to seek out to ensure things go smoothly.

We’ve already mentioned real estate agents, and a knowledgeable, experienced agent can help you find properties that match your criteria, negotiate on your behalf, and guide you through the closing process Seek out a professional familiar with the ins and outs of the area you're considering, and who has a track record of helping buyers like you find their perfect property. 

Unless you're paying cash, you'll need to secure financing from a mortgage lender for your purchase. Shop around for competitive rates and terms, and get pre-approved before starting your property search. While some lenders in the USA may be hesitant to work with foreign buyers, there are plenty of options available if you know where to look. Many international banks and specialized lenders offer mortgage programs specifically designed for foreign citizens, with competitive rates and terms.

While not required in all states, working with a real estate attorney can provide valuable legal guidance and protect your interests throughout the transaction. As a foreign national, buying might be a bit more tricky, so an attorney who has experience working with international clients and cross-border transactions can be very valuable.

Finally, before closing on a property, it's essential to have a thorough inspection from a home inspector to identify any potential issues or repairs needed. Always conduct a thorough property inspection to check for structural issues, pests, and other potential problems. Consider additional inspections for radon, mold, or lead, especially in older properties.

✅ Understand the offer process

So you've fallen in love with a property that checks all your boxes – congratulations! Now it's time to make your move and put in an offer (this is where a real estate agent can really shine).

Now, a seller might come back with a counteroffer – but don’t worry! This is all part of the process, and while negotiations can be a bit of a roller coaster, with an agent's expertise and guidance, you'll have help making informed decisions every step of the way.

Remember, the key to successful negotiations is being prepared, patient, and willing to compromise when necessary. Trust your agent's judgment, but also don't be afraid to speak up and advocate for what's important to you.

✅ Did you conduct due diligence?

Once your offer is accepted, it’s time for some due diligence.

Review the seller's disclosure statement and ask questions about any known issues or repairs needed. Schedule that home inspection we talked about before. Review the property's title report and work with your attorney to resolve any liens, encumbrances, or disputes. Obtain homeowners insurance and review any homeowners association or community rules and regulations that may impact your use and enjoyment of the property.

✅ Be ready to close the deal

Finally, it pays to be aware that closing the deal involves signing a lot of paperwork, transferring the deed, and handling financial transactions. Further, this process can take anywhere from a few days to several months, depending on the complexity of the deal – so be prepared.

Whether you're looking for a place to call home, a vacation retreat, or a wealth-building opportunity, owning property in the US can offer countless benefits and rewards. And while property in the United States can be a complex and time-consuming process, by following this checklist and working with the right professionals, you’ll be on your way to a satisfactory investment in your future!