Sell a Mainland Home Buy in Hawaii 2023
Making the move to Hawaii is an exciting transition, but it is also one that comes with many factors that are unique to moving to an island. These can present some challenges that leave you with a list of questions, or simply a longer to do list. If you are wondering what to prepare for when selling your home on the mainland and simultaneously buying on in Hawaii, this post will help you get organized.
As always, working with the right real estate professionals is the best thing you can do to enjoy a low-stress, efficient, and successful real estate transaction. We can help you identify the right property for your budget and preferences, and walk you through every step of the process. Contact us any time to learn more.
Wondering what you need to know about buying a home in Hawaii in 2023 while selling your existing home on the mainland? Keep reading.
Know Your Market Conditions
Before you set out to sell one home and buy another, familiarize yourself with the conditions in each of the two markets. Talking with your real estate agent, you can come up with a well-informed plan for how to price your home and how to prepare it for a quick sale, as well as how to be a competitive buyer that puts in offers that stand out.
In most of the US, real estate markets remain in seller's market conditions. This will affect you differently with each of the two transactions, but as long as you understand it you can work strategically to line everything up.
Talk with Your Lender
Financing is one of the most crucial parts of any real estate transaction. Talk with your lender about your options so you know if you will need to make contingent offers until your current home sells, or whether there are other solutions available to you. Not only will this help you set your budget and prepare you with mortgage pre-approval, but it will help you determine if you should sell your current home before beginning to put in offers on Hawaii properties.
In some scenarios, selling your home and moving into temporary housing while looking for your Hawaii property may make the most financial and practical sense. Understanding the two real estate markets and getting in touch with your lender are the best ways to gather the information you need to make that decision.
Consider a Post Settlement Occupancy Agreement
In some cases, perfectly lining up the timelines of both transactions might just feel impossible. Remember that there are creative ways to work around this. Sometimes, the best thing to do is find some temporary housing between selling and buying, either on the mainland or the island. In other scenarios, a post settlement occupancy agreement might be a great way to go.
Consider requesting a post settlement occupancy agreement from your buyers, or offering one to the sellers to bridge the timeline gap. A post settlement occupancy agreement means the sellers are allowed to remain in the home after closing, usually paying a "rent" that is equivalent to the buyer's monthly mortgage payment. This arrangement can give you more time to pack and move to Hawaii if it's done on your mainland home transaction, or prevent you from paying two mortgages at once if you close on your Hawaii home before you are ready to move into it.
The bottom line is, completing two real estate transactions at once can be a complex process with lots of moving parts, but it doesn't have to be overwhelming. Arm yourself with the relevant information and work with professionals you can trust to enjoy the best experience possible.