Many homeowners find simultaneously selling and buying very frustrating. You're essentially putting the cart before the horse. This process involves a lot of moving parts and critical details but with the right agent, everything becomes much easier. Locations agents encounter this situation on a regular basis and have the training and experience to effectively manage both transactions.
Competing in the Oahu Market
Finding your dream home may be easy, but in Oahu’s competitive market it may have three offers on the table already. To ensure you have the most competitive offer, you need to come to the table with a pre-approval letter from your lender. You can also submit an offer that has a significant down payment, which will increase your chances of the offer being accepted without any contingencies. Consult your agent on the best strategy for both transactions.
Another safe bet is to arrange bridge financing. This allows you to own two homes for a short time by either borrowing money from family or getting a short-term loan from your lender for the period between when you close on your new home and sell your old one. Essentially, it’s a HELOC (Home Equity Line of Credit) on your present home and you are using it as a down payment on your new home. When your first home sells, you repay the loan. If you are considering applying for a HELOC, it’s best to do it before you put your house on the market.
Put Contingencies in Place
Schedule the closing date on the sale of your old home after the closing date on the new home. This allows you to stay in your present home until you take possession of your new home. Otherwise, you can attempt to negotiate a rent-back arrangement, but keep in mind, not all future buyers may agree to it.
Many people have had great success by hiring a moving company that allows you to place your items in locked storage containers at their facility. This minimizes the stress of moving and allows you to prepare for the sale. When you're settled into your new home, the containers will be delivered to you.
Finding the Right REALTOR® for You
Selecting an experienced agent is essential, as competing in this highly active market requires strong negotiating skills and a broad understanding of Hawaii's unique real estate market. Additionally, at Locations we extend to our clients direct access to the most complete, established network of resources presently available. Our job is to make your home selling and buying experience seamless.