United States (US)
The United States is a federation of 50 states and the District of Columbia spanning six time zones from the Atlantic to the Pacific, plus Alaska and Hawaii.
Buying Property in United States
The full buying process, transaction costs, mortgage, and legal requirements.
US property open to foreigners — no citizenship/residency requirement for purchase. Mortgages harder for non-residents. Closing process 30-45 days standard.
Rent vs. Buy
General rule: buy if staying 5+ years. Calculate break-even considering: property tax (0.3-2.5% annually by state), insurance, maintenance (1% of home value/year rule), HOA fees, transaction costs 8-10% total. NYTimes rent vs buy calculator.
Buying Process — Step by Step
Get pre-approved for mortgage
1-2 weeksSubmit income, assets, credit score to lender. Receive pre-approval letter specifying loan amount. Essential for making offers.
Engage buyer's agent
OngoingPost-NAR settlement (August 2024): buyers must sign a written Buyer Representation Agreement before touring homes, clearly specifying agent compensation. Sellers are no longer required to advertise or offer a buyer-agent commission via MLS — compensation is negotiated deal by deal. In practice, many sellers still cover buyer agent fees (averaging ~2.4% in 2025) to attract buyers, but this is no longer automatic. Budget for potential buyer agent fees of 1–3% if seller declines to pay.
Search and tour
2-12 weeksBrowse Zillow/Redfin/Realtor.com. Tour properties with agent.
Make offer with earnest money
1-3 daysSubmit written offer with 1-3% earnest money deposit (held in escrow). Include contingencies (financing, inspection, appraisal).
Sign purchase contract
1-2 days after acceptanceSeller accepts; both parties sign legally binding contract.
Inspection + appraisal
7-14 daysHire inspector ($400-700) to identify issues. Lender orders appraisal to confirm value. Negotiate repairs or credits.
Loan underwriting
2-4 weeksLender verifies all documentation, runs final credit check, issues clear to close.
Title search + title insurance
1-2 weeksTitle company searches public records for liens/encumbrances. Title insurance protects against defects.
Closing at attorney/title company
1 daySign all documents, wire down payment, receive keys.
Recording at county
1-7 days post-closingDeed recorded in public records at county recorder's office.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Down payment | 3-20% typical; FHA 3.5%, VA 0% | 20% avoids PMI; less requires private mortgage insurance. |
| Closing costs | 2-5% of purchase price | Includes lender fees, appraisal $500-800, inspection $400-700, title insurance $500-2500, recording fees. |
| Property tax | 0.3-2.5% annually | Hawaii lowest, NJ/IL/TX highest. Escrowed monthly by lender. |
| HOA fees | $50-1000/month for condos | Covers building maintenance, amenities. Varies widely by community. |
| Homeowners insurance | $1200-2500/year | Required by lender. Higher in hurricane/wildfire zones. |
| PMI (if <20% down) | 0.5-1% of loan annually | Removable once 20% equity reached. |
The Notary — Mandatory for All Purchases
US uses closing attorneys (east coast) or title/escrow companies (west coast). Not European civil-law notary. Notary public for individual documents but not for real estate transfer itself.
Mortgage
30-year fixed most common. 15-year for faster payoff. ARM (adjustable rate) risky. Jumbo loans over $832,750 (2026 conforming loan limit, up from $806,500 in 2025; high-cost area ceiling: $1,249,125).
20% conventional to avoid PMI. 3% with PMI (conventional). 3.5% FHA. 0% VA (veterans) / USDA (rural).
Non-residents can buy but need: larger down payment (30-40% typical), foreign national mortgage programs (limited lenders: HSBC, Wells Fargo Prime, Bank of America Private Bank), US bank statements, 2 years tax returns from home country. Cash purchase simpler. No Golden Visa equivalent — property does NOT grant residency. Foreign ownership reported on FinCEN for transactions in certain ZIP codes via Geographic Targeting Orders.
Land Registry
County recorder (property records office). Title insurance protects against defects. Public records searchable at county level.
Taxes
Property tax annual — varies $200-30,000+ per year. Transfer tax varies by state (0-4%). No federal property tax. No VAT. Capital gains on sale: $250k exclusion single / $500k married (if primary residence 2/5 years). Investment properties: full capital gains.
New Build vs. Existing Property
New construction: developer sale, upgrades costly, warranty 1-10 years. Existing: inspection more critical. Foreclosure/short sale opportunities but complicated.
Selling Property
List with realtor (5-6% commission split buyer/seller agents) or FSBO. 30-45 days typical close. 1031 exchange defers capital gains on investment property.
Useful Links
Property Buying
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