Selling property in the US: A complete guide for UK residents

Planning to sell a property in the US? Perhaps you’re moving back to the UK, or selling an investment property.

Whatever your plans, read on for a comprehensive guide for UK citizens selling US property. We’ll walk you through the process step-by-step, including info on how to put your property on the market, what agents and legal experts you’ll need to work with and what fees and taxes are involved.

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Selling property in the US as a non-resident - a step-by-step guide

For foreigners selling property in the US for the first time, it’s important to get to grips with how the process works.

You may have an idea based on your initial experience of buying a US property, but it works a little differently from the seller’s side of things.

Let’s run through the main steps, so you know exactly what to expect.

1. Get your paperwork together

Before you do anything else, it’s a good idea to get all the required documents together.

If anything is missing, it’s helpful to spot it early on so you can find a replacement or other solution - otherwise, it could cause delays in getting your house sold.

Here’s what documents you’re likely to need:¹

• Your ID, such as a valid passport
• Documents relating to the initial purchase of the property, including a copy of the deed
• Records, plans and/or invoices relating to major home improvements or repairs
• Homeowners Association (HOA) documents (if applicable)
• Manuals and warranties for major fixtures and included appliances
• A pre-listing inspection report and seller’s disclosures statement
• Property exclusions (details of what is not included in the property sale)
• Preliminary title check
• Seller’s disclosure form - this is mandatory (although requirements vary by state), and provides info to buyers on any significant defects or issues.
• All details and documents relating to your US mortgage.
• Full details of home insurance policies.

You might also want to get a pre-sale home inspection report, which will flag up any potential issues which may affect the value or buyer interest. You can then choose whether to do repairs or improvements in advance.

2. Choose an estate agent (realtor)

The next step is to find a real estate agent to market and sell the property.

You’re not required by law to use one, but it could be very helpful - especially if you’re not living in the US and are unable to make trips there from the UK.

A good realtor will have the expertise and knowledge of the local market to sell your property at a good price.

They can also handle lots of vital tasks on your behalf, such as:

• Carrying out a valuation/appraisal of your home - this will help you set the purchase price.
• Take photographs of the property
• Write marketing copy
• List it on real estate websites and market it in the local area
• Host viewings and open house events
• Communicate with buyers
• Help you review, negotiate and accept offers.

In all parts of the US, all real estate agents must be licensed - so make sure you check this when choosing one.

You can also check the National Association of Realtors (NAR) Directory to find a licensed agent.

3. Advertise the property

Now it’s time to officially put your property on the market and advertise it to potential buyers.

It’s worth taking the time to prepare your property before photos are taken, and definitely before viewings or open house events take place. This involves de-cluttering, deep cleaning and dressing each room to show off its best features.

Your estate agent will play a central role in advertising the property, which may include listing in on popular US property sites such as:

• Zillow
• Realtor
• Trulia
• Redfin
• Homes.com
• RE/MAX
• Rightmove Overseas (if you want to reach buyers from the UK).

4. Appoint a real estate attorney

In some US states, it’s a requirement to appoint a real estate attorney to manage the legal aspects of property sales. But even in states where it’s not mandatory, it’s still recommended to hire one.

Your attorney will give you advice on your US property sale, and to oversee the legal and administrative aspects of the sale.

To find a real estate attorney, start by searching the American Bar Association’s directory.

5. Negotiate and accept an offer

Buyers can submit offers directly to you, but it could be easier if they go through your real estate agent. They can help you negotiate with buyers, make counter offers and agree on a final purchase price.

6. Sign the purchase agreement

Once an offer has been accepted, it’s time for both parties to sign the purchase agreement. This is legally binding, and sets out the terms and conditions of the sale. The buyer may also pay a small deposit as a sign of commitment to the purchase.

7. Work towards closing/settlement

Settlement is the term used to cover all the final steps needed to complete the transaction, which includes:

• Setting a completion date
• Organising payment transfers, including the final balance from the buyer and any fees or taxes owing
• Settling mortgages
• Handing over the keys
• Registering the transfer of the property title deed from your name to the buyer’s name with the local county recorder’s office.

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Taxes and fees when selling property in the US as a non-resident

Now, let’s take a look at the costs of selling property in the US.

The first thing to know is that some costs will vary from state to state, so you’ll need to do some research into fees and taxes in the area your property is located in.

Here’s a quick look at average fees and taxes, to give you an idea of the costs involved:

Estate agent commission fees

Estate agent commission fees in the US vary between agents and states, but you can expect to pay around 2.5% to 3% of the overall sale price.² This is likely to be one of the biggest costs you’ll face as a seller.

Legal fees

Another significant cost to factor in is your solicitor’s fees. These can vary depending on the state, the individual solicitor and the scope of the work they do for you, as well as the property price.

Title costs and escrow fees

While buyers have to shoulder the majority of closing costs in the US, sellers have some admin fees to pay too. This includes the costs of a title search and title insurance, which can protect against potential ownership issues later on - this costs around $1,000 to $2,500 USD.²

If any funds are held in escrow during the sale (which is common in the US), then you’ll also need to pay fees to the escrow company of around 1% to 2%.²

Capital Gains Tax (CGT)

When selling property in the US, taxes are an important cost you need to budget for.

The main one sellers need to know about is capital gains tax (CGT), which may be due on the profit you make from the sale.

By profit, we mean the difference between what you paid for the property and what you sell it for, minus any fees and expenses.

CGT rules can be complicated in any country, but they’re really, really complex in the US. It’s strongly recommended to get professional tax advice, as tax liability can vary considerably depending on your circumstances.

But here are some of the main points you need to know:³

• US residents pay CGT via a tax return submitted to the Internal Revenue Service (IRS)
• The maximum CGT rate for residents is 20%, as long as the property has been held in a personal capacity for over 12 months. If it’s been owned for less than 12 months, rates can increase up to 37%.
• For most non-residents (classed as ‘non-resident aliens’), the CGT rate is 30%
• If you’re classed as a US resident for tax purposes (if you live there permanently or spend at least 183 days there in the tax year), different CGT rules and rates apply
• There are also Foreign Investment in Real Property Tax Act (FIRPTA) rules, which require the buyer to collect a 15% withholding tax, for submission to the IRS.

It’s important to check whether UK rules on capital gains tax apply when you sell property abroad. There’s also double taxation to consider, so you don’t end up paying tax in two countries at once.

Transfer tax

Another major cost involved in US property sales is transfer tax. It varies by state, and some states don’t charge it at all. Where it is charged, rates are up to 4%.⁴

Who pays transfer tax also varies by state, as it can be paid by the buyer, seller or split between the two. It’s a good idea to check state rules so you can factor this cost into your budget.

Does owning property in the US make you a tax resident?

For anyone considering moving to the US (or staying there if you’re a temporary resident), it’s useful to know about tax residency and how it relates to property ownership.

Owning a property doesn’t automatically make you a tax resident in the US. But how much time you spend living in the property does.

The US has two tests to determine whether someone is a tax resident. The first is the ‘green card test’, in which you’re classed as a tax resident if you have a green card (making you a permanent resident).

There’s also the ‘substantial presence test’, in which you’re classed as tax resident if you meet both of the following:⁵

• You’ve stayed in the US for 31 days during the current year
• You stayed in the US for 183 days during the 3-year period that includes the current year and the 2 years immediately before that.

Do you need a lawyer or a solicitor to sell property?

In some US states such as Georgia, Connecticut and New York, it’s mandatory to use a real estate attorney at closing. In others such as California, Texas and Arizona, it’s not essential.

But even where it’s not mandatory, it’s still strongly recommended to appoint a solicitor specialising in real estate or conveyancing work in the US.

They can help you get all your legal documents together ready for the sale, draw up, translate and check over contracts, give you advice about the selling process and so much more.

This could make your property sale go more smoothly and crucially, help you avoid a costly mistake.

Can you use Power of Attorney (POA) to sell your property in the US?

Yes, you can use a Power of Attorney (POA,) to sell a US property while living abroad, but you’ll need to complete the correct legal documentation and processes.

This involves drawing up and signing a legally binding document authorising a lawyer or other designated party to act on your behalf in all matters related to selling your property.

Some US states have non-durable power of attorney which lasts for the length of time required to sell the property, while others have special/limited power of attorney designed for activities such as property sales.

Selling inherited property in the US

A common situation for foreign citizens and UK expats living abroad is needing to sell US property they’ve inherited.

This is certainly possible, but it’s not without its challenges. Here are the key things you need to know:

• The US doesn’t have federal inheritance tax, but a handful of states do have their own inheritance taxes
• There is also estate tax, which is a tax on the transfer of property after the owner dies. However, this is only payable if the value of the estate is over $15 million USD, so most people don’t have to pay it.⁶
• Capital Gains Tax (CGT) may be due on the profits of the sale
• However, CGT is calculated on a ‘stepped-up basis’, which essentially means that the tax basis ‘steps up’ to the fair market value on the date the original owner died - rather than the price originally paid for the property. This can minimise the taxable gain.
• You can appoint a US Power of Attorney (POA) to act on your behalf.

It’s recommended to use the services of a solicitor and/or a tax specialist to help you navigate the legal processes involved in inheriting and then selling property in the US.

How long does it take to sell property in the US?

Selling property in the US takes around 85 days on average,⁷ although it can vary considerably by state and based on individual circumstances - as well as factors beyond your control.

Common bottlenecks which delay US property sales include:

• Property chain failures
• Title issues and unclear property boundaries
• Unrealistic price expectations
• Complex inheritance disputes
• Failed property inspections and repair negotiations
• The buyers loan application being delayed or rejected

It may also depend on how fast properties are selling in the local market.

Do you need a US bank account to sell property in the US?

It’s not mandatory, but it could be extremely helpful to have a US bank account in order to sell property in the country.

If you don’t already have one, it could be an idea to start taking a look at US banks and see what accounts are on offer for non-residents.

If you have an international account or offshore account, you’ll need to speak to your solicitor to find out whether it can be used to send or receive money relating to the sale.

Another thing to note is that receiving international transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert US dollars (USD) to British pounds, or vice versa.

Consider checking out the Wise account to handle your international transfers with mid-market exchange rates and transparent fees.

Is now a good time to sell your property in the US?

Your circumstances will have a lot to do with whether or not it’s the right time to sell your property in the US. For example, how much you originally paid for the property and what prices are currently like in the local property market.

But looking at the country’s property and financial market in general, there are mixed signs as to whether now is a good time to sell your US property.

2026 began with rising house prices and lower mortgage rates, bringing lots of homebuyers into the market. But uncertainties relating to US-involved global conflicts have since slowed prices and pushed mortgage rates up.⁸

There are concerns that this could dampen buyer demand. This - combined with high supply levels - could mean it’s not the ideal time to sell.⁸

Key takeaways

• Non-resident sellers are subject to FIRPTA rules, which require the buyer to withhold 15% of the gross sale price for submission to the IRS as a tax guarantee.
• While the maximum Capital Gains Tax (CGT) for US residents is 20%, most non-residents (classed as "non-resident aliens") face a higher CGT rate of 30% on property profits.
• Total selling costs can be substantial, including realtor commissions (2.5% to 3%), title insurance/search fees ($1,000 to $2,500), and escrow fees (1% to 2%).
• Using a Real Estate Attorney is mandatory in certain states (e.g., New York and Georgia) and strongly recommended in others to manage the complex legal and administrative requirements of the sale.
• The average time to sell a US home is approximately 85 days, though bottlenecks like title issues, failed property inspections, and complex inheritance disputes can cause significant delays.
• Inherited property sales benefit from a "stepped-up basis," meaning Capital Gains Tax is calculated based on the property's value at the time of the owner’s death rather than the original purchase price.

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Sources used:

1. Bankrate - What kinds of documents are needed to sell a house?
2. Bankrate - How much are closing costs when selling a house?
3. EY - Six tax planning considerations for owning US real estate
4. Lumon Pay - Property taxes in the US: A guide for UK buyers
5. IRS - Substantial presence test
6. IRS - Estate tax
7. Clever - How Long Does It Take to Sell a House?
8. MoneyWeek - Is now a good time to sell a house?

Sources last checked on date: 25-Mar-2026