By Jerry Lyons, REALTOR® with Next Step Realty · October 2026

Buying a home in a state you don't live in yet is very doable. It just takes more planning up front, because every trip costs time and money. Here's the order I'd take it in, with the Maryland rules that surprise out-of-state buyers.

Step 1: Narrow Down Areas Remotely

Start with what has to work: where you need to get to on a weekday, the type of home you want, and your real monthly budget. Then compare areas on the same terms.

Property taxes differ by county and sometimes by town. Look up any home's assessment on the Maryland SDAT Real Property search, and confirm school assignments directly with the school district for the specific address.

Step 2: Get Pre-Approved Early, With a Maryland-Licensed Lender

Get pre-approved before your first trip, so you can make an offer as soon as you find the right home.

Mortgage licensing is state by state. Ask whether your lender and loan officer are licensed or otherwise authorized to make loans in Maryland. Maryland's Office of Financial Regulation points consumers to NMLS Consumer Access to check mortgage lenders and loan officers. Some Maryland-chartered banks and credit unions may not show up there, and the Office keeps a separate directory for those.

If you've never owned a home in Maryland, read the Maryland first-time buyer guide. Some programs and tax breaks look at Maryland ownership, not ownership anywhere.

Step 3: Understand Maryland's Agency Rules and the Buyer Agreement

Two pieces of paperwork come early.

  • The agency disclosure. Maryland law requires agents to give you a written disclosure of whom they represent no later than the first scheduled face-to-face contact. The Maryland Real Estate Commission's form is called "Understanding Whom Real Estate Agents Represent." It's a notice, not a contract.
  • The written buyer agreement. Under Maryland law, a buyer's agent represents you through a written brokerage agreement. That agreement has to include a definite end date that takes effect automatically, the broker's compensation stated as a percentage, a dollar amount, or both, whether the broker may be paid by someone other than you and your obligations if so, what has to happen for the broker to be paid, and how either side can cancel.

Since August 17, 2024, under the National Association of REALTORS® settlement practice changes, an MLS participant working with a buyer has to have a written agreement in place before touring a home with you. That includes live virtual tours. Commissions are not set by law and are negotiable.

Step 4: Tour From a Distance, Then Plan One Trip

Listing photos and 3D tours are a good first filter. For homes that make the cut, a live video tour shows what photos skip: the basement, the street, and how the home sits next to its neighbors.

Then plan one focused trip for your finalists. See the top homes in person and drive your real commute at rush hour. If you have to buy without seeing a home in person, lean harder on the inspection, and consider having someone you trust walk through for you.

Step 5: Make an Offer: Maryland Contract Basics

Your offer is a written contract of sale, usually with addenda. Key terms:

  • Deposit (earnest money): shows the seller you're serious. If a real estate broker holds it, Maryland law requires the broker to put it in a separate trust account within 7 business days after both parties accept the contract, unless the parties give written directions otherwise.
  • Home inspection contingency: sets a window to inspect and then negotiate repairs or credits, or to walk away under the contract's terms.
  • Financing contingency: gives you a set time to get your loan approved.
  • Appraisal: your lender orders one to support the loan. Your contract determines what happens if the appraisal comes in below the price.
  • Settlement date and possession: line these up with your move and your current lease or sale.

Maryland residential sales contracts also include a statement about the Homestead Tax Credit, which comes back up in Step 8. Real estate agents can advise only on real estate matters. For legal or tax questions about your contract, talk with a Maryland attorney or accountant.

Step 6: Settlement in Maryland

Maryland calls the closing "settlement." It's handled by a title company or a settlement attorney. You have the right to choose your settlement agent and title insurer, and the Maryland Insurance Administration says only licensed title producers can conduct settlements in Maryland.

Transfer and recordation taxes. The state transfer tax is 0.5% of the price, and counties add their own transfer and recordation taxes. If the contract doesn't say otherwise, Maryland law presumes buyer and seller split these taxes equally. For a county-level example, see what it costs to sell in Maryland.

The first-time Maryland homebuyer break. This matters for out-of-state movers. Maryland defines a first-time Maryland homebuyer as someone who has never owned a home in Maryland that was their principal residence. If you qualify and will live in the home, the state transfer tax drops to 0.25% and the seller pays it. The seller also pays the county transfer and recordation taxes unless the contract expressly says otherwise. You'll sign a sworn statement at settlement, and if there are two or more buyers, each one generally has to qualify. The first-time buyer guide has more.

Signing from a distance. If you can't be at the settlement table, ask the settlement company early what they can arrange, such as mailing documents to a notary near you or a remote online notarization. Maryland has allowed remote notarial acts since October 1, 2020, but only by Maryland notaries authorized by the Secretary of State, using approved technology. Check with your lender too.

Step 7: Protect Your Closing Funds From Wire Fraud

Criminals send emails that look like they come from your agent or settlement company, with "updated" wiring instructions. Wires are hard to reverse.

  • Before you wire anything, call the title company at a phone number you already know is real, such as one you saved at the start of the transaction. Never use a number or link from the email itself.
  • Confirm the account name and number by phone, and treat any last-minute change to wiring instructions as a red flag.
  • If you think you've sent money to the wrong account, call your bank right away and ask for a recall, then report it to the FBI at ic3.gov and the FTC at ReportFraud.ftc.gov.

Step 8: Your First 60 Days in Maryland

  • MVA: new residents must get a Maryland driver's license and Maryland vehicle title and registration within 60 days of becoming a Maryland resident. Book a "New to Maryland" appointment through MyMVA. The MVA's new-resident page also covers the vehicle safety inspection.
  • Homestead Tax Credit: this state credit limits how much the taxable assessment on your principal residence can rise each year. State law requires a cap of 10% or less, and counties and towns can set lower ones. It takes a one-time application. SDAT mails one after your deed is recorded, and your settlement agent has to give you a copy at settlement. You can also apply online. Check your status on the SDAT Homestead page.

This article is general information, not legal, tax, or lending advice. Rules and programs change. Confirm details with the agency, your lender, your settlement company, or a Maryland attorney or tax professional.

Sources: Maryland Code, Real Property §14-117 (Homestead notice in sales contracts); Tax-Property §9-105 (Homestead Property Tax Credit); Maryland Code, Business Occupations & Professions §17-530, §17-528, §17-534, and §17-502; Maryland Real Estate Commission, Understanding Whom Real Estate Agents Represent; National Association of REALTORS®, Consumer Guide to Written Buyer Agreements; Maryland Office of Financial Regulation, Search for Regulated Financial Service Providers; Maryland Insurance Administration, A Consumer Guide to Title Insurance; MREC, Title Insurance Consumer's Bill of Rights; Maryland Code, Tax-Property §13-203; Maryland Code, Real Property §14-104; Maryland Secretary of State, Remote Notary Information; CFPB, Mortgage Closing Scams; FTC, What To Know Before You Wire Money; Maryland MVA, New Maryland Residents; Maryland SDAT, Homestead Property Tax Credit Program.