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How to buy real estate in the USA in 2022

How to buy real estate in the USA in 2022

America is one of the world’s most popular countries for immigration and business. Many entrepreneurs seek to enter the American market because they see the potential for their companies to develop. This is one of the reasons why American real estate is in high demand.

Buying an apartment in New York, the largest city in the United States of America, means making a wise investment. It’ll work in favor of you getting a residence permit and earning money in the rental business.

Learn about how to purchase real estate in the USA in this article.


Foreigners'rights to buy an American property

The purchase and registration of real estate in the USA in 2022 is available to any foreign citizen, whether he lives in America or in another country. There are no special requirements for the buyer as buying real estate in the USA by a non-resident doesn’t have any immigration advantages.

What types of real estate can foreigners buy?

Non-residents can buy any real estate (residential or commercial) in the United States of America in any state. You don’t need any special permission.

What rights does a foreigner get after buying real estate in the USA?

It is profitable for the state to sell real estate abroad but it doesn’t give a residence permit for these investments.

By buying a property, you can get an EB-5 business visa if you buy a commercial property or invest at least $1,000,000 (¥ 6,300,000) in a commercial enterprise.

Note. Before buying a home for personal use, you should chat to a tax lawyer.

What responsibilities do foreigners have after buying real estate in the USA?

Before you buy a property in the United States of America, you should know that you’ll have to pay yearly property taxes and utilities. Arrears for utility bills or not paying taxes will result in fines and a visa or residence permit being refused.

Foreigners buying American real estate: pros and cons

Why must you purchase real estate in the USA if it doesn’t give you any immigration benefits?

  • Having a home in the USA means you can get a tourist visa. The maximum number of trips during a year is 5 and the maximum length of each trip is 3 months.
  • This is a great investment option. Real estate in the USA is constantly increasing in price. Since 2009, housing in New York, Los Angeles and Silicon Valley has risen in price by 50%.
  • The earlier you buy a house, the less you’ll have to pay for it. More than just prices, bank loan rates are also growing every year.


  • There aren’t any immigration or tax benefits. You’ll have to pay federal, state and county taxes even if you aren’t a resident or citizen of the United States of America.

There are other property taxes in the USA for non-residents:

  • income tax;
  • property tax;
  • capital gains tax.

Whose services will a foreign buyer need?

Unlike other countries where you can use the services of one real estate agent, in America, a team of specialists helps you buy an apartment. Because there’s such a high demand for housing, you need to consult with different brokers to find and buy a home. The more qualified specialists you work with, the better the result will be.

The first person to talk to is a broker who’ll advise you about how to buy a home. They must be licensed, navigate the areas of the city, and be in touch 24/7. They’ll also coordinate the team’s activities. The team has mortgage brokers, a lawyer, a property law specialist, a financial consultant, a housing inspector, an accountant, surveyors, appraisers, an architect, a designer, movers, and others.

How do you choose a property?

Before you buy an investment property, you should make a list of these main points beforehand:

  • External condition of the house. If the building needs renovations, you need to have extra funds for this maintenance and repair.
  • Location of the apartment. If the windows overlook the street and not the courtyard, the room will be light but the noise might make you feel uncomfortable.
  • General condition of other houses in the area. If the homes nearby are in poor condition, this can reduce the resale cost of the apartment.
  • Infrastructure near the house like shops, cafés, medical institutions, and so on.
  • How long has the property been for sale? If the apartment isn’t for sale for a long time, it might have hidden problems.

Mortgages for foreigners in the USA

When buying a home in the United States of America, foreigners can apply for a mortgage. US banks have financing programs for non-residents that mean they can get a loan of up to 75% of the home’s value. But to do this, they need to collect a lot of documents and go through several interviews with a bank representative.

The first stage is pre-qualification. You contact a bank representative and inform them about your assets and income. After that, the specialist will give you an amount that the bank will lend you.

The second stage is the loan pre-approval. You need to fill out an application and prepare documents about your financial solvency to hand over to the consultant.

Advantages of a mortgage:

  • You know the amount of the loan so you don’t have to spend time looking for housing that you can't afford.
  • An advantage over other buyers because the seller will know that you’ll pay for the transaction quickly.
  • Buying real estate is processed faster because you have prepared all the documents for this.

Stages of a real estate registration in the USA

Let's consider the main stages of the real estate purchase procedure.

Step 1. Opening a US bank account

This is needed only if the procedure for acquiring real estate in the United States of America will be with a mortgage. If you’re buying a home using your own money, you don’t need to open an account.

Step 2. Purchase offer

Have you decided on the home you want? Next, you need to prepare an offer with the terms of the transaction. If you use mortgage funds, the bank will confirm the loan. If the buyer is going to buy a home with their own money, they’ll need to give a bank account statement.

Step 3. Signing the contract

After the seller has accepted your offer, you sign a Contract to Purchase Real Estate with them. This will include the transaction terms, payment amount, deposit amount, and housing assessment terms. The Title Company, Escrow Company or the buyer's lawyer are responsible for the legal parts of the transaction.

Step 4. Property inspection - an  extra evaluation

The time the transaction takes is usually from 30 to 60 days. During this time, you need to have an extra assessment of the property done. A licensed specialist (Physical Inspection) can do this. The tasks of the expert include a detailed analysis of the property and giving the buyer a written report with any identified problems.

The assessment’s cost depends on how complex the home is. So, an assessment of a home of140 m2 costs anywhere from $300 to $500 (from ¥1,903 to ¥3,171).

Step 5. Legal verification

Legally verifying the Title Search registration is done after you sign the sales contract. This is done to check if there are any mortgage debts and other accounts. The Title Company is also responsible for issuing the real estate insurance, controlling the transactions and verifying documents. This company transfers the Title Insurance to the new owner.

Note. Insurance and inspections are not needed when you buy a land plot.

Step 6. New owner registration

After the buyer pays for the property, they receive the Deed. It usually takes about 10 weeks to register the new owner’s deed.

Step 7. Transaction payment

The buyer pays the main amount at the end of the transaction and after getting the property rights. At this stage, the buyer also needs to pay extra costs like any taxes. They transfer the money to a lawyer or an escrow account.

Is it possible to conduct a transaction remotely?

Buying a property for sale in New York and other cities in the USA remotely is a common thing. But you need to issue a power of attorney to a lawyer in your country’s consulate to do this. The buyer gets this power of attorney form by mail. The lawyer gets the money for the transaction to their trust account and after the transaction is done properly, will transfer it to the seller.

We’ll help you become a real estate owner in the USA

The site New-York.Realestate has certified verified owners. If you need to get detailed advice on buying real estate in the USA, you can always contact the specialists listed on our website. They’ll tell you how to buy a house in the USA profitably and correctly. Choose the perfect house and ensure a secure transaction with us.

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