Selling Your House While Living Abroad: A Practical Guide for Expats
You can sell your U.S. home from overseas without ever boarding a plane. Remote closings, digital documents, and experienced professionals make the process straightforward for expats. What matters most is preparing your timeline, knowing how the tax rules apply, and setting up the right support.
Whether you kept your home as a rental property, held onto it “just in case,” or simply haven’t gotten around to selling, this guide walks you through exactly how to sell your U.S. property while living abroad—from choosing an agent to signing the final documents remotely.
Can I Sell My U.S. House from Overseas?
Yes. You can sell your U.S. home while living in another country. Modern technology has made the process remarkably straightforward, and you have several options for handling the logistics remotely.
Your Remote Closing Options
Electronic Signatures (Most Common) Most states now accept digital signatures on closing documents through platforms like DocuSign or Dotloop. Your title company or real estate agent will send you documents electronically, you sign from anywhere in the world, and the closing proceeds immediately.
Remote Online Notarization (RON) Over 40 states allow remote online notarization, where you appear via video call with a licensed notary. The notary verifies your identity using your passport or driver’s license, watches you sign the documents on screen, and applies their digital seal. The entire process takes 15-30 minutes.
Power of Attorney If your state doesn’t accept electronic signatures or RON, you can grant power of attorney to someone in the U.S. (a family member, friend, or attorney) to sign closing documents on your behalf. You’ll need to have the POA document notarized at a U.S. consulate or embassy in your country of residence.
Flying Back Some expats prefer to return for the closing, especially for high-value properties or complex transactions. This gives you the opportunity to do a final walkthrough, meet the buyers, and handle any last-minute issues in person.
Not Sure How Selling From Overseas Will Affect Your U.S. Taxes?
How Do I Choose a Real Estate Agent?
Working with the right agent is critical when you’re selling from abroad. You need someone who understands the unique challenges of remote sellers and can handle issues without you being physically present.
What to Look For
Experience with Expat Sellers Ask potential agents: “Have you worked with sellers living abroad before?” The answer should be yes, with specific examples. Agents experienced with expat sellers know how to:
- Coordinate across time zones
- Handle remote document signing
- Manage property preparation from a distance
- Communicate proactively about every step
Local Market Expertise Your agent should know your neighborhood intimately: recent comparable sales, current market trends, typical days-on-market, and buyer preferences in your area.
Strong Property Management Network Since you can’t handle repairs, staging, or showings yourself, your agent needs connections with:
- Contractors for repairs and improvements
- Cleaning services
- Staging companies
- Landscapers
- Lockbox and key management systems
Excellent Communication Establish communication expectations upfront:
- Preferred method: Email? WhatsApp? Video calls?
- Response time: Within 24 hours?
- Regular updates: Weekly summary emails?
- Time zone coordination: When are you both available?
Interview Questions to Ask
- “How many remote sellers have you worked with in the past year?”
- “How do you handle property showings when the seller isn’t available?”
- “What’s your process for managing repairs and improvements?”
- “Can you recommend contractors, cleaners, and stagers?”
- “How will we communicate given the time difference?”
- “What happens if there’s an emergency issue with the property?”
How Do I Prepare My Property for Sale?
Preparing your property from abroad requires advance planning and a reliable team on the ground.
If You’ve Been Renting the Property
Give Proper Notice Most states require 30-60 days’ notice to tenants before terminating a lease. Check your state’s landlord-tenant laws and your lease agreement. If your tenants are on a month-to-month lease, this is straightforward. If they’re mid-lease, you may need to wait until the lease expires or negotiate an early termination.
Coordinate the Transition
- Schedule the final walkthrough after tenants move out
- Arrange cleaning and any necessary repairs
- Remove all tenant belongings and ensure the property is vacant
- Change locks and secure the property
Consider Tenant Cooperation Some tenants are willing to allow showings while they still occupy the property. This can speed up your sale timeline, but requires:
- Tenant consent in writing
- Advance notice for showings (usually 24-48 hours)
- Possibly offering a rent reduction or incentive
- Clear communication about their move-out date
Essential Preparations
Repairs and Improvements Walk through the property virtually (ask your agent or a trusted contact to video call from each room) and identify:
- Obvious repairs: Leaky faucets, broken fixtures, damaged walls
- Cosmetic updates: Fresh paint, deep cleaning, carpet cleaning
- Curb appeal: Lawn maintenance, power washing, front door refresh
Staging Decisions Empty homes typically sell slower and for less money. Options:
- Professional staging: Rental furniture makes the home feel larger and helps buyers visualize living there
- Virtual staging: Photos are digitally furnished (must be disclosed to buyers)
- Keep existing furniture: If it’s in good condition and not too personal
Professional Photography High-quality photos are essential, especially since you can’t show the home yourself. Budget $200-500 for professional photography including:
- Wide-angle shots of each room
- Exterior and curb appeal photos
- Twilight shots (if appropriate)
- Drone footage for large properties
What’s the Typical Timeline?
Understanding the timeline helps you plan your move, coordinate with tenants, and set realistic expectations.
Pre-Listing Phase (2-4 Weeks)
- Interview and select real estate agent: 1 week
- Tenant notice and move-out (if applicable): 30-60 days
- Property preparation, repairs, cleaning: 1-2 weeks
- Professional photography: 3-5 days after property ready
- Pricing analysis and listing strategy: 1 week
Active Marketing (30-60 Days Average)
Market conditions vary significantly by location. Your agent should provide data on:
- Average days on market in your neighborhood
- Current inventory levels
- Recent comparable sales
- Seasonal factors affecting your market
Showing Management: Your agent will coordinate all showings using a lockbox system. Many agents now use smart lockboxes that track when and how long buyers’ agents were in the property.
Under Contract (30-45 Days)
Once you accept an offer:
- Inspection period: 7-10 days
- Buyer’s financing approval: 30 days (cash offers close faster)
- Title search and clearance: 2-3 weeks
- Final walkthrough: 1-2 days before closing
- Closing day: Documents signed, funds transferred
What About the Tax Implications?
While this article focuses on the selling process, understanding the basic tax implications helps you time your sale strategically.
The Section 121 Exclusion
If the property was your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 in gains (single) or $500,000 (married filing jointly) from U.S. taxation. This is the single most important tax benefit for expats selling their U.S. home.
Critical Timing: The “5-year lookback” means if you moved abroad more than 3 years ago, your qualification window is closing. Calculate your dates carefully—selling just a few months too late could cost you tens of thousands in taxes.
Quick Check:
- Sale date: When do you plan to sell?
- 5 years before that: When is the lookback start?
- Did you live there as your primary residence for 24 months during that window?
If you’re not sure or your situation is complex (like renting the property after you moved), see our comprehensive guide on buying and selling real estate abroad for detailed tax strategies.
Rental Property Considerations
If you rented your home while abroad, two tax complications arise:
Depreciation Recapture You were required to claim depreciation deductions on your rental income each year. When you sell, that depreciation gets “recaptured” and taxed at 25%, even if you qualify for the Section 121 exclusion on the rest of your gain.
Non-Qualified Use Rental periods after 2008 may reduce your Section 121 exclusion proportionally. The longer you rented it, the less you can exclude.
State Taxes
Even if you properly terminated your state residency for other purposes, you’ll typically owe state capital gains tax to the state where the property is located. Nine states have no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), but all others will tax the gain.
For complete tax guidance including how to calculate your gain, what forms to file, and how to minimize taxes, see our pillar guide: U.S. Taxes on Foreign Property: Buying and Selling Real Estate Abroad.
What Documents Do I Need?
Gather these documents before listing to streamline the process:
Property Documents:
- Deed and title documents
- Mortgage information (account number, lender contact, payoff amount)
- Homeowners insurance policy
- Property tax statements (showing taxes are current)
- HOA documents (if applicable)
- Any warranties or permits for improvements
For Tax Purposes:
- Original purchase closing statement (HUD-1)
- Records of all improvements and their costs
- Depreciation schedules if you rented the property
- Rental income and expense records
Identity Verification:
- Valid passport (for remote notarization)
- Proof of your current address abroad
- Power of attorney documents (if using POA)
How Will I Receive the Sale Proceeds?
The closing company (title company or attorney, depending on your state) will wire the proceeds after all closing costs, real estate commissions, and mortgage payoff are deducted.
Wire Transfer Options
To Your U.S. Bank Account The simplest option. Most title companies prefer wiring to U.S. banks because:
- No international wire fees ($25-50 per wire)
- No currency conversion issues
- Faster processing (same day)
- Lower fraud risk
You can then transfer funds to your foreign account at your convenience.
Direct to Foreign Bank Possible but requires:
- Providing your foreign bank’s SWIFT code and routing information
- Accepting international wire fees (usually deducted from proceeds)
- Waiting 3-5 business days for funds to clear
- Potential currency conversion at the bank’s rate
To a Trusted Person in the U.S. Some expats have proceeds wired to a family member’s account, then transfer the funds internationally themselves using services like Wise or OFX for better exchange rates.
Large Wire Transfer Reporting
Wires over $10,000 trigger bank reporting requirements (not a problem, just standard anti-money-laundering procedures). If you’re moving large sums internationally:
- Your bank will file a Currency Transaction Report (CTR)
- You may need to answer questions about the source of funds
- Keep closing documents showing the funds came from a property sale
What Common Challenges Do Expats Face?
Time Zone Coordination
The problem: Your agent wants to call during their business hours (9am-5pm their time), which might be midnight for you.
The solution:
- Schedule regular weekly calls at mutually convenient times
- Use email for non-urgent updates
- Grant your agent authority to make minor decisions without your approval
- Establish “emergency call” criteria (offer received, major issue discovered)
Emergency Repairs
The problem: The home inspection reveals a broken HVAC system that needs immediate replacement.
The solution:
- Pre-approve your agent to authorize repairs up to a certain amount ($500? $1,000?)
- Have 2-3 trusted contractors your agent can call immediately
- Keep a credit card on file with your agent for emergency expenses
- Consider offering the property “as-is” if you can’t manage repairs from abroad
Last-Minute Buyer Requests
The problem: The buyer requests additional repairs or price concessions days before closing.
The solution:
- Discuss negotiation limits with your agent upfront
- Decide in advance what you will and won’t concede
- Trust your agent’s advice on market-standard requests
- Consider the cost of delaying the closing vs. making concessions
Verification of Identity
The problem: The title company needs to verify you’re really you before wiring hundreds of thousands of dollars.
The solution:
- Have your passport available for video verification
- Be prepared to answer security questions about the property
- Some companies require you to visit a U.S. embassy or consulate for notarization
- Wire fraud is a major concern—title companies take verification seriously
What If I’m Returning to the U.S.?
If you’re planning to return to the U.S. soon, timing your sale strategically can make the transition smoother.
Before You Return
Advantages of selling before moving back:
- You can claim expat status for your tax return (automatic 2-month extension to June 15)
- Your “lookback” period still includes your time living abroad
- You’re not juggling the sale with a new job and settling back in
Disadvantages:
- You can’t do a final walkthrough in person
- Harder to coordinate repairs and showings
- Can’t stage the home with your own furniture as you unpack
After You Return
Advantages of selling after moving back:
- You can handle everything in person
- Easier to prepare the home for sale
- You can attend showings and the closing
Disadvantages:
- Need temporary housing or buy before selling (stressful)
- May miss the Section 121 qualification window if you wait too long
- Costs of maintaining the home while trying to sell
For most expats, selling before returning is simpler and less stressful.
What Are My Next Steps?
Step 1: Check Your Section 121 Qualification Calculate whether you’ll qualify for the tax exclusion based on when you moved abroad and when you plan to sell. This is the single most important factor affecting your taxes.
Step 2: Research Your Local Market Contact 2-3 real estate agents in your area to learn about:
- Current market conditions
- Realistic pricing for your property
- Average time to sell
- Required repairs or improvements
Step 3: Handle Tenant Issues (If Applicable) If you’re currently renting the property, review your lease and begin the process of transitioning the property back to your control.
Step 4: Gather Your Documents Start collecting purchase documents, improvement receipts, and mortgage information now—it’s harder to find these from abroad later.
Step 5: Establish Your Team
- Real estate agent (the most critical choice)
- Property manager or trusted local contact
- Tax professional familiar with expat property sales
Step 6: Understand the Full Tax Picture Read our comprehensive guide on buying and selling real estate abroad to understand how to calculate your gain, what forms you’ll need, and how to minimize taxes.
Need Expert Help?
At Greenback, we’ve helped over 23,000 expats file over 71,000 returns, and many of our CPAs and Enrolled Agents are expats themselves who understand the unique challenges of selling U.S. property from abroad.
If you need help calculating whether you qualify for the Section 121 exclusion, how to report the sale, or want to minimize your tax liability, we can help. No matter how late, messy, or complex your return may be, we’ll make sure your taxes are done right so you have peace of mind.
If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions.
Selling From Overseas Should Not Put Your Refund Or Compliance At Risk.
This article is for informational purposes only and should not be considered tax advice. Tax situations can be complex, and individual circumstances vary. Please consult with a qualified tax professional regarding your specific situation.
Related Resources
- U.S. Taxes on Foreign Property: Buying and Selling Real Estate Abroad (Comprehensive tax guide – pillar page)
- Selling U.S. Property as a Foreign Resident (FIRPTA withholding for non-resident aliens)
- Foreign Rental Income Tax: How to Report
- State Taxes for Expats
- Tax Deadlines for American Expats
