Buying a Home in Michigan While Selling Out-of-State? (Here’s EXACTLY How to Do It)
- Andrew McManamon
- 11 minutes ago
- 10 min read
So you're thinking about moving to Michigan—but wait, you’ve got a house to sell in another state? Cue the dramatic music and slight heart palpitations. Buying a home is one thing. Selling a home is another. Doing both at the same time, from different states? That’s a logistical tango with a side of stress-sprinkles. But take a breath, because I’m about to walk you through this, step-by-step, so it doesn’t feel like you’re building IKEA furniture blindfolded (that can be ugly by the way).
Buying A Home In Michigan From Out-of-State
First things first—this can be done. I’ve helped clients navigate this exact scenario, and while every situation is a little different, there’s a system that works. The most important thing to remember is that timing is everything. Seriously. Forget location, location, location for a second—when you’re selling one house and buying another, syncing the timing can make or break your sanity.
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Evaluate Your Current Home Situation
Let’s break it down. Start by evaluating your current home situation. Is your home already on the market? Is it under contract? Or are you still wondering what it could sell for? If you're in the early stages, the smartest move is to connect with a solid real estate agent in your current state—someone who knows the market, can price your home right, and understands the pressure of timing a cross-state sale. If you don’t have that person yet, don’t sweat it. I’ve got contacts all over the country—and globe—so I can help you get paired with someone who actually knows what they’re doing.
Buying A Home In Michigan
Now let’s talk buying. Most people can’t buy a new house in Michigan until they sell their current one. That’s called a contingency—it means your ability to buy is dependent on your ability to sell. Not every seller in Michigan will accept a contingent offer, especially in competitive areas, but it’s not impossible either. It all comes down to how far along you are in the selling process. If your current home is already under contract with contingencies cleared, your offer is a lot stronger.
Buying + Selling = How Do I Finance The New House?!
In some cases, people opt for a bridge loan or home equity line of credit so they can buy in Michigan before selling their current home. It’s not for everyone, but if you’ve got equity and solid finances, it’s an option worth exploring—especially if the market you’re selling in is slower and the one you’re buying in is heating up.
Now, let’s talk about financing logistics. One of the biggest questions people ask is: can I qualify for a new mortgage while still carrying one on my current home? The answer is: maybe. It all depends on your debt-to-income ratio. Most lenders like to see a DTI under 43%, although the exact number varies by loan program and lender. If your current mortgage plus the projected payment on the new Michigan home keeps you under that threshold, you're probably fine. If not, your lender might suggest waiting to sell before buying, or going with a contingent offer. Pro tip: always get pre-approved with a Michigan lender who understands your timeline and goals.
What If Your Home Doesn't Sell in Time?
Another fear: what if my home doesn’t sell in time? This is where backup plans are your best friend. If you’ve listed your home and haven’t gotten bites, you may need to consider a price reduction, incentives, or even temporarily renting it out if you’re financially able. If your Michigan home purchase is contingent on selling and that sale falls apart, we can usually extend the closing date or back out depending on the agreement’s contingency clauses. Worst-case scenario? You may need to line up a short-term rental in Michigan while you relist or rework your original sale. I’ve seen it happen, and it’s not ideal—but it’s not the end of the world either.
What Do You Do With All Your Stuff?
Okay, here’s something most people don’t think about until it’s too late: what do you do with all your stuff in between homes? If your two closings don’t line up perfectly (and let’s be real—they rarely do), portable storage options like PODS or Pack-Rat are amazing. They’ll deliver a container, let you pack it on your timeline, and then deliver it to your new address once you're ready. Alternatively, full-service moving companies often offer storage-in-transit if there’s a gap between closings. Or, if your new Michigan home allows early possession, we can sometimes negotiate storing your belongings in the garage pre-closing with a formal agreement in place.
How Are You In Two Places At Once?
A huge stressor in this situation is needing to be in two places at once. The question I hear constantly: do I need to fly back for both closings? The good news is, probably not. In most states, you can do remote closings or use a mobile notary. Michigan is very friendly to out-of-state buyers—you can typically sign everything digitally or overnight paperwork if required. You might need to be available by phone or email that day, but you won’t have to hop on a plane. Just let your agent and title company know your travel situation early, so everyone can plan accordingly.
Should You Sell First or Buy First?
Another major decision: should you sell first or buy first? There’s no one-size-fits-all answer, but here’s a quick way to think about it. Selling first gives you cash-in-hand and a clear picture of your budget. You avoid double mortgages and reduce financial stress. But it might mean renting temporarily or living in a short-term Airbnb while you house-hunt. Buying first gives you control—you can wait for the right home without the pressure of being homeless—but it may require a bridge loan, more aggressive offer strategy, or temporary double payments. I help clients weigh these pros and cons every day, and it really comes down to your timeline, risk tolerance, and market conditions in both your current and future zip codes.
Two Agents in Two Places? (Anxiety Loading)
Speaking of risk, coordinating two agents in two different places can feel like herding cats. You might wonder: do I need to manage both? The answer is: no. A good agent (like me) will coordinate with your listing agent and create a timeline that makes sense. You don’t need to play go-between—we’ll keep each other in the loop on showings, offers, contract timelines, and ideal move dates. And if you’re still searching for a solid listing agent in your current state, I can tap into my nationwide network to connect you with someone who’s not just going to stick a sign in your yard and ghost you.
The Michigan Home Buying Process
So what’s the actual process of buying in Michigan look like? Buckle up, here’s the quick-and-dirty version. Once you’ve got financing lined up (or your home sale under contract), you start house hunting. And when I say hunting, I mean really narrowing it down—because house hunting from out of state can get overwhelming fast. I usually do virtual tours, Zoom walkthroughs, custom video updates—whatever it takes to give you eyes on the ground until you can get here in person.
Finding The House
You find a house you love, we make an offer. In Michigan, most offers include an earnest money deposit, usually 1–3% of the home’s price, to show you’re serious. Once the offer is accepted, the due diligence period kicks in: that means inspections (including well, septic, and sometimes radon), which is typically 7 to 10 days, followed by the appraisal, and then your lender kicks into full gear.
Closing on Your Michigan home
Michigan’s closing process is handled through title companies, not attorneys. You’ll sign a mountain of paperwork (most of which can be done remotely if you aren't around), and we’ll make sure keys and occupancy are lined up based on your timeline. If you need temporary occupancy in your new Michigan home, we can negotiate that. If you need a post-closing possession agreement on your current home, that can be arranged too—so you’re not couch-surfing in between moves.
Two Closings In Two States
Now here’s where things get real: the overlap. Coordinating two closings in two states is like a game of 3D chess, but it’s doable with clear communication. Ideally, you close on your old home in the morning and on your new Michigan home that afternoon. That’s the unicorn scenario. More realistically, you’ll close on one home a day or two before the other, and we’ll make arrangements to cover any gaps with occupancy agreements or short-term rentals if needed. That’s the kind of stuff I help orchestrate all the time.
Let's Talk About Utilities
Once you know the closing date for your home in Michigan, it's time to get those utilities scheduled. Most listing agents will know the information to provide to your buyers agent, but if they don't utilize this resource to see the service map for utilities in Michigan, as it changes depending where you're located, you could be consumers energy over there for gas and electrical or consumers energy and DTE for each, etc.
Just type in the local municipality of the area you're buying a home in and it will tell you who your providers are, Link HERE for the utility search. More times than not here in Metro Detroit it's Consumers Energy and DTE Energy (Click each one and they will take you to the "start service" page for you to type in the address and make an account and schedule service for your closing day or the day you get possession of the home).
Water and Sewage
Next with utilities, depending on if the home is on a sewer, septic, well or city water. Depending on where you buy your home at, the listing agent will schedule a final water read if it's city water, up to the date of closing or possession to let the public works department know how much to charge the seller. Other times, there is no final water read and the buyer would simply wait until they receive their first water/sewer bill (sometimes a combined charge), and they would provide that to their agent to give to the title company. At closing, the title company holds back some funds from the sellers to pay off their usage of the bill then they release the rest to the seller if it's less than that 300 or so dollars, so that's why it's very important to provide the first bill to your agent. If you are on well and septic this step can be skipped because you don't have to set up services or payments through the city. It's simply your responsibility to maintain your systems.
Trash Pick up
What about trash?! That's a situational question depending on where you live. If it's in an HOA, then most times it's apart of your fee or taxes and a trash can is already sitting there ready for you to use and there's nothing else to do. Other times, cities have contracts with trash companies and you will just need to go to the city website and find their trash pick up tab and make an account. More times than not, people wait for the first bill to come in the mail, then set up an account based on the information provided on the bill. In areas that don't have a contract or aren't apart of an HOA, you would simply find a trash provider that services your area (the listing agent and seller should know this), and you would just shop around and find a provider.
The Paperwork
What most people don’t plan for—but absolutely should—is the paperwork on both sides. At closing you'll receive a Principal Residence Exemption (PRE) Form and property transfer affidavit, they will most likely stick these forms on the top of your closing package when all is said and done. You'll want to bring these forms to the local assessor's office to have them stamp and record these, and they will make copies to give to you as well, so you have proof they have been recorded. These forms tell the township/city that you are claiming this home as your primary residence, and will exempt you from paying higher taxes.
If this isn't done with the property transfer affidavit within 45 days after closing, you will have to pay a hefty fee that will lead to daily fees, and if you don't bring the Principal Residence Exemption form you will be paying more than you need to in property taxes, so I always recommend doing this right after closing to get it out of the way or simply tell the title company to mail it out for you. I tend to recommend that you take care of yourself, as you'll know that it was taken care of and not passed through numerous hands (it also gets you familiar with where the township offices are, and they sometimes have new resources for new buyers which never hurts for any future situations).
Having The Mental Bandwidth...
And let’s talk mental bandwidth. You’re juggling movers, utilities, schools, addresses, emotions, and probably a thousand browser tabs. My job is to reduce that chaos. Whether it’s connecting you with a trusted agent in your current state, scheduling virtual showings, and sending you a well-documented video or hopping on a facetime call during out allotted time, coordinating closing timelines, or just being a calm, real estate voice in the storm—I’ve got you.
To Summarize:
To sum it up: selling a home out of state while buying in Michigan is totally doable and I have helped too many people to count, do just that. Yes, it’s a juggling act. Yes, you’ll want to scream into a pillow at least once. But when you’ve got the right people in your corner, it becomes a whole lot smoother. So if you’re looking to make the move, feel free to start the conversation with me. I help people relocate to, within and out of the fine state of Michigan and I'm happy to be your resource. Even if you’re not sure where to begin, I’ll help you make a game plan, find the right connections, and land you comfortably in your new mitten-shaped home. Get your hands on the relocation checklist!
Cheers,
Andrew
Andrew McManamon is a Michigan REALTOR® with Signature Sotheby’s International Realty and provides real estate services to Buyers, Sellers and Investors throughout SE Michigan including Livingston County, Oakland County, Washtenaw County, Genesee County & beyond. Andrew has become one of the pillars of Michigan real estate. Prior to his real estate career Andrew was responsible for managing a senior living facility in Brighton, Michigan as a dining supervisor and an activities assistant. Andrew’s passion to help people is unlike any other, and he continues to strive to be the best resource he can be. Andrew graduated from Cleary University in Howell, Michigan with a double major in business and marketing, and currently resides in Brighton, Michigan.
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