US Real Estate: Complete guide to buying property in the US

If you’re planning to purchase a property in the US as a local resident, expat, or foreign investor, you’re in for an exciting – but sometimes daunting – time. 

This guide covers the end to end process of buying a property in the US, from the steps to take, the costs you’ll likely need to budget for, and some top tips. Plus, we’ll look at how services like Wise can help optimize currency exchange, reduce transfer fees, and simplify the financial aspects of property purchases.

Key takeaways

• Buying a property in the US is possible for locals and foreigners alike, but the process may look different to in your home country, so planning ahead is essential
• Getting professional help from a local real estate agent or solicitor can help the process go smoothly
• US property costs vary enormously depending on where you’re looking, the type of property, size and many other factors
• When buying a property in the US you’ll need to budget for the purchase costs but also additional legal fees, real estate agent costs and transfer taxes
• Once you’re ready to close on your purchase you’ll need to settle all outstanding debts before you get your keys – if you’re sending your payment to the US from overseas, a provider like Wise can help you cut the overall costs of your transfer

Can foreigners buy property in the US?

Yes. Foreigners can buy property in the US with no restrictions.

The process to buy property in the US as a foreigner is the same as buying if you’re a US citizen or resident. There are a few things you’ll need to do before you buy, such as getting a US ITIN – your tax identification number – and getting preapproved for a US mortgage if that’s how you’d like to finance your purchase.

This guide walks through the process to buy property in the US as a resident or non resident. As the process can be unfamiliar, it’s also important to get personal support from real estate agents and professionals with local knowledge in the local area you want to buy in, who can guide you through the process.

Requirements to buy property in the US

The requirements to buy property in the US are broadly similar whether you’re a US citizen, Green Card holder or non-resident.

To buy a property you’ll need to provide some important documents such as:

• Proof of ID – usually your passport
• Your ITIN or SSN
• Proof of assets, earnings or income, depending on how you will finance the purchase

If you want to buy a home with a mortgage, the process to get approved will mean assembling a set of supporting documents which might include the above, alongside:

• A recent credit report
• Proof of income – such as pay stubs, W-2s, or tax returns
• Proof of assets – such as bank statements showing you can cover the downpayment and closing costs

How to buy a property in the US: Step-by-step guide

A property is likely to be one of the most expensive purchases you’ll ever make – so having a handle on the process to follow can offer peace of mind and make everything move more smoothly.

Here’s an outline of the process you’ll follow when you buy a property in the US:

Step 1 – Set a budget and get professional help 

Before you begin your property search you’ll need to set a realistic budget which may mean you need to get preapproved for a mortgage if you’d like to buy with a loan. Don’t forget to also budget for associated costs like transfer taxes, legal fees and closing costs – plus the ongoing costs of running your new property once you get it.

At this early stage it’s a good idea to assemble professional support – including a real estate agent and lawyer who can help you navigate the process of buying a new home. Finding experts with experience in your preferred area can make the process run far smoother.

Step 2 – Search and view properties

You can start your property search using online real estate portals, which offer simple search tools to find properties in your budget and preferred area to build a picture of the market. Some to look at include:

• Zillow
• Redfin
• RE/MAX

Your agent can also support this stage – and set up viewings once you’ve shortlisted some places you’re interested in.

Step 3 – Make an offer

Your agent will draft an offer for you once you’ve found the right place for your needs, which includes a lot of information about the agreed purchase, including price, inclusions and offer expiration date. You’re likely to need to pay a small downpayment at this stage called an Earnest Money Deposit, followed later by a deposit which can be up to about 10% of the purchase price.

To protect your interests, the agent may advise you to make your offer contingent on factors like receiving a satisfactory home inspection and appraisal, and getting your mortgage approved if you’ve not already done so.

Step 4 – Complete due diligence and legal requirements

Your advisor and legal team can now advise you on the due diligence checks you should complete. Usually this will include a home inspection and appraisal – and for some homes, additional surveys for things like flood risk or pest issues.

Your lawyer will also complete title searches and other legal checks in the background to ensure the property can legally be bought and sold.

Step 5 – Close and complete the purchase 

Once a closing date is confirmed, your agent and lawyer will work together to complete the legal side of the purchase, before you and the seller sign all the required paperwork to close the deal.

On the closing day you’ll need to pay any remaining balance on the property before you take possession. Consider using a provider like Wise to send your payment to the US – with a dedicated large transfer service, low fees and mid-market rates, Wise is a cost-effective way to get your money where it needs to be quickly.

Property prices in the US

Property prices in the US vary enormously depending on the type of property, the location, the condition it’s in and many other market factors. The average property cost in the US is 512,800 USD at the end of Q2 in 2025 – but as you’d expect this covers many regional variations.

Ultimately you’ll need to shop around to get a feel for the prices of the property type you are interested in, in the location you’re targeting. Using online real estate portals is a good bet, to build a picture of your options.

Data from a service like Numbeo can also give an idea as this offers prices per square meter, which you can use to build an idea of the costs for the size property you’d like. Here are some examples for major US cities:

Location	Price per square meter, city center	Price per square meter, outside of city center
New York, NY	16,901.37 USD	12,488.49 USD
Austin, TX	4,337.40 USD	3,239.94 USD
Seattle, WA	7,048.04 USD	7,048.04 USD

Data taken from Numbeo, 26th August 2025 – data is sourced from users and can change.

Property prices can be extremely sensitive to changes in external markets – and can change and evolve rapidly, so getting local support and advice from experts on the ground is essential.

Cheapest places to buy property in the US

If you’re price sensitive, then looking for the cheapest options for US property makes sense. However, bear in mind that shifts in supply and demand cause frequent changes to housing prices, so getting up to the minute advice from local agents is advisable.

US news reports in 2025 have highlighted options for cities where residents typically pay relatively low amounts of their income on housing costs. Some core places to consider might include cities like Battle Creek in Michigan, Florissant, Joplin, or St. Joseph in Missouri or McAllen and Wichita Falls in Texas.

Other states which featured heavily in the lists included South Carolina, Alabama, and Iowa – although naturally, the actual costs of housing in different locations can vary a lot. Shop around to find the best deal based on your needs.

Factors affecting house prices

There are many factors affecting house prices including the location, market conditions, property type and age, and supply in the specific area. 

In fact, supply and demand is key to understanding the house price in many locations. If there are many properties being marketed to buyers, the prices may fall as each seller tries to capture interest – but where there aren’t many homes in a specific location, sellers may put prices up as buyers are willing to spend more for access to the limited supply.

Other important factors include infrastructure development – new highways or facilities can open up interest in an area and push up demand, for example. Broader factors like macro economic conditions, interest rates and global stability can also make a difference in the cost of housing.

Financing a property purchase in the US as an expat

Your choices for financing a property purchase in the US as an expat are likely to include mortgages and loans taken in the US or your home country, or paying in cash.

Not all banks will offer a mortgage for an overseas property, so you may find it trickier to get a mortgage in your home country to buy in the US. Working with a broker might make this process easier.

US banks might be able to help you with a mortgage, even as an expat or non-resident – but the eligibility rules do vary and it can mean you have to have a higher downpayment compared to a US citizen or resident. Interest rates might also be higher – compare a few options to find the best deal on the market for your specific needs.

How much does it cost to transfer money internationally to buy a house in the US?

If you need to send money from Europe, the UK, Canada, Australia, or anywhere else in the world for that matter you’ll need to find a reliable and low cost provider to help. Getting stuck with a bad service can mean you end up with poor exchange rates, hidden fees, and a slower than necessary transfer.

Because some providers and banks charge hidden fees, it is important to take a look at the total amount received, instead of the total cost of the transfer when you compare different services to decide which is best for you. To give an example of how this works, let’s imagine you’re sending a payment from France to the US to pay for the down payment on your new property.

Here’s how the payment may work with Wise compared to a European bank:

Sending 50,000 EUR to USD	Sending money with Wise	Sending money with BNP Paribas
Send money fees	207.18 EUR	15 EUR
Exchange rate	1.16285 (Mid-market rate)	1.14951
Total received in USD	57,901.58 USD	57,458.22 USD

Data taken from Wise comparison site, on 26th August 2025.

In this example, you can see that you get more in USD in the end with Wise. This is despite the fact that Wise’s transfer fees look to be higher compared to the fee used by BNP Paribas.

The key difference here is that Wise uses the mid-market exchange rate, while the bank adds a percentage fee to the rate used. This is a common practice, but it can mean you’re paying more in fees than you expect. On high value payments in particular, this cost can add up significantly until the conversion cost is far higher than the upfront fee you’re paying for the transfer. 

Wise transfers use mid-market rates and transparent fees, which include a discount for sending large amounts abroad. Plus if you want, you can get a Wise account to manage your recurring payments in USD, such as mortgage payments or utilities bills, and use your Wise account to manage your money across 40+ currencies conveniently and with low overall costs.

How much does it cost to buy a property in the US? Cost breakdown

When you buy a property in the US, the additional fees beyond the agreed property price are significant. You’ll need to build these into your budget to make sure your purchase can proceed. 

Here are some to consider – bear in mind that costs can vary by state, property type and many other factors, so getting personal advice is essential when building your property purchase budget.

• Transfer tax: Fees are very varied by state and sometimes property or land type, and can be high – get professional advice based on the location you’re buying in
• Appraisal fees: Often around 350 USD, and required by most mortgage providers
• Inspection fees: Variable costs depending on property, often around 300 USD – 400 USD – this may also be required by your mortgage company
• Closing costs: 2% – 5% of property price – this covers required legal fees, lender fees and things like mortgage insurance which may be needed
• Downpayment: This may be from 3% – 20% of the property value depending on your choices and the agreement you have with your lender
• Ongoing costs: Property taxes which are usually paid locally at county and state level can be significant – 0.4% – 2% of the value of the home annually, plus you may also need to pay HOA fees, utilities, mortgage insurance and other costs

Government assistance schemes

While there are various government assistance schemes for home buyers in the US, these are usually aimed at specific target groups including low income US citizens and Green Card holders, veterans and rural home buyers. Non-residents can not usually apply for these schemes and even if you’re a Green Card holder, there are some very strict eligibility criteria to meet. 

Here are a few to investigate if you’re interested:

Government-backed home loans and mortgage assistance – various different schemes for Federal Housing Administration (FHA) loans and government backed mortgages. 

Residential clean energy credit – residential clean energy credit for things like solar panels and wind turbines being installed in your home, with 30% potential reimbursement through to 2032. 

Homeowner Assistance Fund (HAF) – federal program to help homeowners who were financially impacted by COVID-19, subject to meeting specific income and hardship criteria. This fund is set to run until Q3 2026 but funds may be exhausted before then.

Moving into the new property

Already closed on your new US property? There are still a few things to do:

Insurance: Your bank might require you to have home insurance as a condition of your mortgage – it’s not mandatory if you own the home outright. Costs are highly regionalised, on average around 2,000 USD/year, but rising to over 6,000 USD in the most expensive state – Oklahoma. Check out options from State Farm, Allstate, and Travelers.

Utility transfer: Ask the seller to provide details of utility providers before you close on the property, and contact them in advance of your move to start the transfer. On move in day, take any required meter readings and work with the providers to transfer the accounts into your name.

Setup services: You might want to bring over your old providers for internet, cable TV, phone services and so on – or it might be time to try for a new deal. Look into the options and costs depending on the services you value, so you know what you’ll need to do to keep continuous access when you move.

Manage ongoing expenses: Property taxes will apply which are usually managed at a local and state level, as well as other expenses such as your mortgage and HOA costs. Plan for all ongoing expenses when you set up your US property budget so everything is covered.

If you’re paying your US property costs from abroad, Wise’s recurring transfers can be set up for regular bills like mortgage payments, and utility costs, which can be especially beneficial for those earning in different currencies. Simply arrange a recurring payment so you can set it and forget it, knowing your bills will be paid on time every time, with the best available exchange rates and low fees.

Is the US a good place to invest in property as an expat?

If you’re buying property for investment purposes in the US you’ll need to get professional advice to make sure you’re making the best decisions based on your investment timeline and risk tolerance.

As with any investment, market volatility and economic factors can mean that buying US property is a good idea for some investors, but less attractive for others. Don’t rush into any decisions, and take time to thoroughly research the opportunities and risks.

It’s important to note that buying property in the US doesn’t mean you get a visa automatically, and it is not a route to residency for the US. You’ll still need to complete immigration processes if you intend to live in your property for the long term.

If you do decide to buy property in the US as an investment, look out for low cost providers for large amount transfers, such as Wise, which can mean you pay less in fees overall. 

Pros and cons of buying property in the US as a foreigner

Pros	Cons
✅ Non residents and foreigners have no restrictions on buying a property  ✅ Very broad range of property types for all budgets and needs ✅ Well regulated property market with no language barrier to worry about ✅ Attractive destination to work, live, study or retire	❌ Buying a property does not guarantee you a visa or citizenship ❌ Costs of home ownership inthe US can be high with property taxes, insurance and other ongoing costs ❌ Market volatility may mean your investment does not perform as well as you might hope

Is it better to buy or rent property in the US?

Buying vs renting in the US is likely to come down to your personal preferences and needs. Recent research from 2025 suggests that the day to day cost of renting is cheaper in many locations than the ongoing costs of home ownership. However, if you choose to buy you do also have the prospect that the value of the home could increase over time – although there are no guarantees here.

If you’re a foreigner moving to the US for a short while, renting is likely to be a more attractive option. Even if you plan to stay for longer, it gives you flexibility to move, and change homes while you find the place and set up that suits you and your family. On the other hand if you’re immigrating to the US for good, putting down roots with a property of your own may appeal.

Weigh up the pros and cons of each to help you decide on the best route in your specific situation.

Understanding the US property market and homeownership

In the most recent government census documents, home ownership in the US was around 65% – a statistic which has been relatively stable in recent times. 

In the middle part of 2025, high mortgage rates have been causing falling demand and correspondingly, property prices in some areas have fallen. Housing stock availability overall is up almost 30% on 2024, but this impact is fairly localised. Some regions and cities are seeing steady prices – or even gains.

Overall, prices are looking up in the Northeast and Midwest, while they’re seeing some softening in the South and West of the US. 

Expert tips for successful property purchase

Buying a property is a huge life event. To help make sure everything goes smoothly, here are some things to think about:

Know your budget: Before you explore property options, set a realistic budget which includes all the extras like legal fees and closing costs. Be prepared for ongoing costs of running a US property to be significant as well – build a long term budget to make sure you have everything covered.

Get professional advice: Buying a US property will require local knowledge and professional support from a real estate agent and legal professional. While you can go it alone, working with a professional team can make the process easier to navigate and less stressful on all involved.

Focus on structural details over superficial features: Once you own your property you can change most superficial and cosmetic details, but structural features are trickier. Look at the potential of a property including considering renovations and changes, if you see a fixer-upper and have the time, energy and budget to take it on.

Learn key local property terms and concepts: While the US property market is similar to that in many other countries, it’s not likely to be exactly the same as in your home country. Take a little time to research the purchase process, including the acronyms and terms that a real estate agent may use.

Understand local market cycles and timing: Before you buy, get to know the location you’re searching in, including looking at trends in property costs and closure speeds. Different factors can influence both supply and demand in any given area, so understanding the usual flow can give you a competitive edge.

Managing finances for international property ownership

If you intend to buy a property in the US from abroad, it’s important to find cost-effective methods of currency exchange management. From sending your downpayment and closing costs, through to managing your ongoing expenses in USD, you could end up paying large amounts in fees and exchange rate markups if you rely on your bank.

Looking for a dedicated provider for currency exchange and international transfers can make managing your finances across multiple countries far easier and cheaper.

Wise offers a complete solution for international property buyers, including international transfers with mid-market rates and low fees, with automatic discounts when sending large amounts abroad. You can use the Wise rate lock features to protect against currency fluctuations, and set up recurring transfers for regular payments like mortgages and utility bills.

Because Wise fees are transparent – and you get the mid-market exchange rate to convert to or from USD – you’ll always be able to see exactly what your international property is costing you in your home currency.

Learn more about sending large amount transfers abroad with Wise here.

Conclusion

While buying property in the US can be complex, it’s achievable with proper preparation and a local team of professionals in support.

Before you buy your US property you’ll need to make sure you understand local US laws, market conditions, and financial requirements, so everything goes smoothly.

If you’re buying your property in the US from overseas, take a look at Wise as an excellent way to send money internationally, with mid-market rates, low fees – and discounts on high value transfers.

Frequently asked questions (FAQs)

How much deposit do I need to buy property in the US?

The deposit amount you need to pay to buy property in the US depends largely on the type of loan you have. Down payments from 3.5% to 10% are most common.

How can I save money on currency exchange when buying property in the US?

If you want to save money on currency exchange when buying property in the US, take a look at Wise as an excellent way to send money internationally, with mid-market rates, low fees – and discounts on high value transfers.

Are there limits to how much I can transfer abroad for property purchases?

There may be limits to how much I can transfer abroad for property purchases which are set by the provider you choose to send your money with. For high value international payments check out Wise which has transfer limits to the US of as high as 20 million USD depending on payment method.

How do I ensure security when transferring large sums for property purchases?

When transferring large sums for property purchases it’s important to use a reputable provider or bank which has high level digital security features. Providers like Wise use a secure platform, and have industry level safety measures. 

You are likely to need to complete verification checks which help keep your transfer safe, but it’s still crucial that you’re aware of property purchase scams, and take steps to protect yourself. 

Can I buy a house in the US if I live abroad?

Yes. You can buy a house in the US if you live abroad, with the same rules, process and costs as buying as a US resident.

Useful resources

• US Federal House Price Indicator – Official data of US house prices with current and historical information going back 50 years
• US Census – home ownership information from census data
• Numbeo – aggregated data on costs of living including housing costs in different cities 
• EY Article  – guide on tax planning for US home owners covering taxes upon purchase and resale
• IRS TIN page – details on getting a TIN or ITIN
• IRS publication – first time homeowners guide
• US home buyer assistance – main page for government backed mortgages and other schemes
• CFPB Homeowner Assistance Fund – main page for the CFPB Homeowner Assistance Fund covering state and federal fund options
• Wise – Wise US for low cost international payments and multi-currency account services 

Sources were last checked 26th August 2025.